F8-Governmental

Question 1

What is the difference between the economic resources measurement focus and the financial resources measurement focus?

Answer 1

economic resources (accrual) and financial resources (modified accrual) financial position and changes in financial position

Question 2

Which funds use the economic measurement (accrual basis) or the financial position (modified accrual) basis?

Answer 2

economic->proprietary and fiduciary funds

financial-> government funds

Question 3

What is the measurement focus of governmental fund accounting?

Answer 3

measuring the flow of current financial resources and the resulting financial position (source, use and balances)

Question 4

What is the measurement focus of proprietary and fiduciary accounting?

Answer 4

Capital maintenance, cash flows and income determination

Question 5

What are the classifications in the governmental funds?

Answer 5

N-onspendable
U-nassigned
C-ommitted
A-ssigned
R-estricted

Question 6

When are governmental funds recorded?

Answer 6

When they are available and measurable, and includes funds received less than 60 days after the close of the fiscal year.

Question 7

How is the bond premium or discount amortized for gov’t funds?

Answer 7

It isn’t, the full discount/premium is recorded in the debt service fund or other fund that is using the bond.

Question 8

When are principal and interest recorded for LT Debt?

Answer 8

When they are due and payable, not when they are incurred.

Question 9

What is the net position for proprietary and fiduciary funds?

Answer 9

R-estricted for debt services
U-nrestricted
N-et investment in capital assets