F8: NFP Accounting and Governmental Accounting: Part 1

Question 1

Unconditional Promises (Pledge)

Answer 1

is a contribution and is recorded at its fair value when the promise is made.

Question 2

Conditional Promises (Pledge)

Answer 2

is a transaction that depends on an occurrence of a future and uncertain even. Recognition does not occur until the conditions are substantially met.

Question 3

Multiyear Pledges

Answer 3

are recorded at the net present value at the date the pledge is made. Future collections are considered donor-restricted revenues and net assets. (time restricted).

Question 4

Donated Service recognized some of the time

Answer 4

Specialized skills are required
Otherwise needed by the organization
Measurable
Easily (at Fair Value)

Question 5

Governmental Funds (Fund Types GRSPP)

Answer 5

G - General Fund
R - Special Revenue Funds
S - Debt Services Funds
P - Capital Projects Funds
P - Permanent Funds

Keep in mind that these are Modified Accrual

Addl notes:
MAC-GRaSPP
Modified Accrual Current financial resources measurement focus

Question 6

Proprietary Funds (Fund Types SE)

Answer 6

I - Internal Service Funds
E - Enterprise Funds

These are Full Accrual Basis

Addl notes:
SCARE
SE
CIPPOE
Accrual accounting, record non-current assets and liabilities,** E**conomic resources measurement focus.

Question 7

Fiduciary (Trust) Funds (Fund Types CIPPOE)

Answer 7

C - Custodial Funds
I - Investment Trust Funds
P - Private Purpose Trust Funds
POE - Pension (and Other Employee Benefits)

Full Accrual Basis

These are considered Government-wide

Question 8

Encumbrance

Answer 8

Encumbrance accounting is used to record purchase order and is designed to monitor spending for increased budgetary control.

Question 9

Appropriations

Answer 9

Estimated expenditure. Appropriations is the budgetary account that is credited at the beginning of the year.

Question 10

Budgetary Accounting Journal Entries (beginning of year)

Answer 10

Dr. Estimated Revenue Control (recorded budget)
Dr. Budgetary control (negative/deficit)
Cr. Appropriations control (approved spending)
Cr. Budgetary control (positive/surplus) (over appropriation control)

Book (BAE-BAE)

Question 11

Budgetary Accounting Journal Entries (end of year)

Answer 11

Dr. Appropriations
Dr Budgetary control (positive)
Cr. Estimated revenue control
Cr. Budgetary control (negative)

The JE at period end to reverse the budget is always for the same dollar

Close (BAE-BAE)

Question 12

BAE-BAE

Answer 12

Budget, Activity and Encumbrances

Remember what you book for, close for the same amount.

Question 13

Contingency requirements

Answer 13

Are unique to voluntary non-exchange transactions.