F8 - NFP Accounting & Governmental Accounting

Question 1

Tranfers of assets to a NFP that raises or holds contributions for others

Unaffiliated =

Answer 1

1 = Recipient has:
A. Power.
B. No Power

2. Recipient Recognize:
   A . Contribution
   B. Refundable Advanced Liability
3. Beneficiary Recognize:
   A. Nothing
   B. Contribution

Question 2

Tranfers of assets to a NFP that raises or holds contributions for others

Financially Interrelated

Answer 2

1. Recipient has :
   A. Power
   B. No power
2. Recipient Recognize:
   A. Contribution
   B. Contribution
3. Beneficiary Recognize:
   A. Nothing
   B. Change in net Assets

Question 3

In the government what are the fund types

Answer 3

1)
G = General funds
R = special Revenue funds
a 
S = debt Service funds
P = capital Project funds
P = Permanent funds

2)
S = internal Services funds
E = Enterprise funds

3) 
C = Custodial 
I = Investment Trust
P = Private purposes Trust
POE = Pension and Other Employee benefits trust

Question 4

GRaSPP is?

Answer 4

G-General funds= 5 star General

R-special Revenue funds= Revenue from specific taxes or other earmarked sources (by law) are restricted or committed to finance particular activities of government.

A-
S-debt Service funds= accumulated of resources and the payments of interest and principal on all “general obligations debt” NOT - SE CIPPOE. Resources of funds are restricted, committed, or assigned to debt service expenditures.
P-capital Project funds= accumulated resources restricted, committed, or assigned for purchases, construction or leasing of major capital assets by a government unit, Expect those project are finance by enterprise funds.
P-Permanent funds= report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purpose support the reporting government programs, (benefits of the public)

Question 5

SE CIPPOE is?

Answer 5

S- internal Service fund = are established to finance and account for service and supply provided exclusively to the other departments within the government.

E-Enterprise fund= acquisition and operations of governmental facilities and service that are that are primary more than 50%. Customers are external. Also activities is finance debt, Laws, regulations, and pricing policy are from recovered fees and charges.

C- Custodial fund = collection of cash held temporary for an authorized recipient to whom it will be disburse latter.

I- Investment trust funds = a governmental entity that sponsor one or more external investment pools.

P- Private Purposes trust = is the designated funds for for reporting all other trust arrangements under which principal and income are foe specific invidual, private organizations or other government.

POE- Pension and Other Employees benefit trust - governmental sponsored defined benefits and defined contribution plans, Employees benefit.

Question 6

What does these types of clasifications mean:

Character 
Objective 
Function
Program
Activity

Answer 6

Character = when
Objective = GL
Function = purpose 

Program = group activities, operations, or organization unit to perform of specific purpose or objective.

Activity = is a specific line of work performed by organization unit.

Question 7

NFP Financial Reporting Standards for expenses are:

Answer 7

Functional classification as group expenses by mayor classes and programs (aligned with mission and purpose) and support services.

Natural classification as group expenses by individual types that aligned to an entity’s chat of accounts such as salary utilies, ect.

Question 8

NFP expense classification?

Answer 8

Programs - expense are the activities for which the organization is charted.

Support services - expense includes everthing not classified as programs like

• Fundraising
• Management and general expense
• Membership development

Question 9

What are the primary user of the Governmental Financial Statement?

Answer 9

1 citizens, taxpayers, voters, media, researcher

2 legislators and oversight bodies, country and city commissioners

3 Investor and creditor, bond agencies, financial institutions

Question 10

Governmental
Purchase method
Consumption method

Answer 10

Purchase method = record expenditure when purchased.
= then - Record Dr. Asset (inventory) and Cr. Nonspendable fund balance at the end of year.

Consumption method = record Asset when purchased.
= Then expense when consumed. Dr. Expenditure Cr. Asset (inventory)

Question 11

Entetprise Funds are require when any one of 3 criteria is met:

Answer 11

1 The activity of the fund is finance by debt secured by a pledge of fee revenue
2 Laws require collection fees adequate to recover cost
3 Pricing policies are established to produce fees to recover cost