F9

Question 1

Government wide financial statements; Fund financial statements; Notes to the financial statements.

Answer 1

Governmental Accounting

Question 2

Reporting government wide statements include: statement of net assets and statement of activities., Reporting governmental fund financial statements include: Balance sheet, Statement of revenues, expenditures and changes in fund balances and reconciliation of the government wide statements. , Reporting proprietary fund financial statements include: Balance sheets/Statement of net assets, Statement of revenues, expenses and changes and fund net assets, and Statement of cash flows, the direct method., Reporting fiduciary fund financial statements include: statement a fiduciary net assets and statement of changes in fiduciary net assets., Combining statements for major component units include: Statement of net assets and Statement of activities., Notes to the financial statements include: Schedule changes in capital assets, and Schedule of changes in long-term liabilities., Required supplementary information include management’s discussion and analysis, Budgetary comparison schedules, Pension and infrastructure information.

Answer 2

Governmental Accounting

Question 3

CAFR: Comprehensive Annual Financial Report; Introductory section: Letter of transmittal, Organizational chart, List of principal officers. Basic financial statements and required supplementary information (GASB #34), Management’s discussion and analysis, Government-wide financial statements, Fund financial statements, Notes to the financial statements, Required supplementary information

Answer 3

Governmental Accounting

Question 4

Primary government: Government activities, Business type activities, Total primary government activities; Discretely presented component units

Answer 4

Governmental Accounting

Question 5

Description of the basic financial statements, Identity of the primary government and discrete component units, Economic conditions in outlook, Major initiatives

Answer 5

Governmental Accounting

Question 6

Invested in capital assets, net of related debt, Restricted and Unrestricted

Answer 6

Governmental Accounting

Question 7

Infrastructure assets refer to the streets, bridges, gutters, water systems, and other assets of the government. They are reported as assets and government wide statements, at historical costs and depreciated unless certain conditions are met for reporting using the modified approach.

Answer 7

Governmental Accounting

Question 8

Governments may elect not to capitalize donated works of art if works are protected and displayed and proceeds from any future sales are going to be reinvested in other works.

Answer 8

Governmental Accounting

Question 9

Interfund activities between funds that are consolidated within governmental or business-type activity reporting categories are eliminated when preparing government-wide financial statements.

Answer 9

Governmental Accounting

Question 10

Service charges; Operating grants and contributions; Capital grants and contributions

Answer 10

Governmental Accounting

Question 11

Activity resulting from internal service funds are reported in proprietary funds but should be reported in the governmental activities column of the government-wide financial statements unless the government’s enterprise funds are the primary recipient of internal service fund services.

Answer 11

Governmental Accounting

Question 12

The government-wide statement of activities is presented in a net cost format defined as follows: Revenue separated into program revenues (SOC) and general revenues. Expenses are reduced by program revenues resulting in net (expense) revenue and changes in net assets. General revenue, extraordinary items, and special items are reported separately. Result is change in net assets.

Answer 12

Governmental Accounting

Question 13

Total assets, liabilities, revenues, or expenditures/expenses of the individual fund are: At least 10% of the corresponding total for the fund category to which the major fund belongs, and At least 5% of the corresponding total for all governmental and enterprise funds combined.

Answer 13

Governmental Accounting

Question 14

Reconciling items may result from differences in measurement focus or basis of accounting (GAL BARE). Governmental Fund Equity (Fund Balance) + Assets (noncurrent) minus, Long-term debt + Internal Services Fund net assets, Basis of accounting, Accrual differences resulting in receivable or payables for, Revenues converted from modified to full accrual or Expenses.

Answer 14

Governmental Accounting

Question 15

Reconciling items may result from differences and measurement focus or basis of accounting. (GOES BARE), Governmental fund changes in fund balance plus Other financing sources (debt proceeds) Expenditure capital outlay (net depreciation) Principal payments on debt, Service (internal) fund change in net assets may need to be added, Basis of accounting, Accrual differences resulting in revenues for expenses for, Revenues convert from modified to full accrual rule (example accrual of earned tax revenues even though collected more than 60 days after year end), Expenditures converted to its expenses (example accrual of interest expenses)

Answer 15

Governmental Accounting

Question 16

A statement of cash flows is prepared for proprietary funds. Cash flows from operating activities, Cash flows from noncapital financing activities, Cash flows from capital and related financing activities, Cash flows from investing activities.

Answer 16

Governmental Accounting

Question 17

Reciprocal Interfund activity: Interfund loans, Interfund services provided and used; Nonreciprocal Interfund activity: Interfund transfers, Interfund reimbursements.

Answer 17

Governmental Accounting

Question 18

Primary governments are usually represented by a general purpose government, such as a state, county, city or other jurisdiction that can stand by itSELF: Separately, Elected Boards, Legally separate entity, Financially self-sufficient.

Answer 18

Governmental Accounting

Question 19

Component units are those governmental or not for profit organizations that either do not meet the criteria of a primary government or are so intertwined with the primary government that exclusion from the primary government’s financial statements would cause the primary government’s financial statement to be misleading.

Answer 19

Governmental Accounting

Question 20

Blended: Consolidation with the primary government; Discrete: Shown in a separate column as component unit.

Answer 20

Governmental Accounting

Question 21

Blended: When the component unit is, in substance, the same as the primary government: A board of the component unit is “substantively the same as that of the primary government.” The component unit serves the primary government exclusively or almost exclusively. The component unit is not a legal entity. Discrete: When the criteria for blended presentation are not met.

Answer 21

Governmental Accounting

Question 22

Accrual basis of accounting

Answer 22

Governmental Accounting

Question 23

Financial Accounting Standards Board

Answer 23

Not for Profit Organizations

Question 24

Statement of financial position: Statement of activities, Statement of cash flows, Statement of functional expenses (required for voluntary health and welfare organizations, optional but encouraged for all others)

Answer 24

Not for Profit Organizations

Question 25

Unrestricted, Temporarily restricted, Permanently restricted.

Answer 25

Not for Profit Organizations

Question 26

Change in total net assets, Change in unrestricted net assets, Change in temporarily restricted net assets, Change in in permanently restricted net assets.

Answer 26

Not for Profit Organizations

Question 27

Cash flows from operating activities, Cash flows from investing activities, Cash flows from financing activities

Answer 27

Not for Profit Organizations

Question 28

Program expenses, and Support expenses which include fundraising expenses and management in general expenses.

Answer 28

Not for Profit Organizations

Question 29

Cash contributions as revenues or gains in the period in which they are received, measured at fair value at the data gift. Unconditional promises (pledges), reported at its fair value when received. Unconditional promises (pledges), recognition occurs when future in been occurs (condition met). Multi year pledges reported that net present value at the date the pledge is made, with future collections considered temporarily restricted (by time).

Answer 29

Not for Profit Organizations

Question 30

Unconditional promises to contribute in the future (pledges) are reported as restricted support (time restriction), at the present value of the estimated future cash flows using a discount rate commensurate with their risk involved.

Answer 30

Not for Profit Organizations

Question 31

Donated services are recognized as revenue of the financial statements of nonprofit organizations SOME of the time. Recognized donated services must meet the following criteria: The services creates or enhances financial assets or; Specialized skill was required to deliver the service and it was delivered by an individual possessing those skills; Otherwise needed service would have been purchased by the organization anyway; Measured Easily (the accurate valuation of the service is easy).

Answer 31

Not for Profit Organizations

Question 32

Donated materials are accounted as revenue and fair value on the date of receipt, if the fair value can be objectively determined. Contributions of work of art, historical treasures, etc., need not be recognized as revenue if they are protected by the organization, held by the organization for display and, if sold, the proceeds of the sale by designated for the acquisitions of other works .

Answer 32

Not for Profit Organizations

Question 33

Variance power defines the extent to which an organization has discretion over the use of the resources it receives. The presence or absence of variance power governs the recognition of the asset received as revenue or a liability.

Answer 33

Not for Profit Organizations

Question 34

When assets are transferred without variance power, so that the recipient organization does not have the unilateral authority to redirect assets to another beneficiary, those transfers are recognized as liabilities.

Answer 34

Not for Profit Organizations

Question 35

When assets are transferred with variance power, which gives the recipient organizations the unilateral party to redirect assets to another beneficiary, the transfers are recognized as revenue.

Answer 35

Not for Profit Organizations

Question 36

All debt securities and those equity securities that have readily determinable fair values are measured at their value.

Answer 36

Not for Profit Organizations

Question 37

Gains and losses on investments are reported in the statement of activities as increases or decreases to unrestricted net assets, unless the use of investments is restricted by explicit donor stipulations for by law

Answer 37

Not for Profit Organizations

Question 38

Depreciation expense and accumulated depreciation are recorded

Answer 38

Not for Profit Organizations

Question 39

Student tuition and fees, at gross, Governments aid, grants, and contracts, Gifts and private grants, Endowment income, Sales and services of educational departments, Revenues and auxiliary enterprises

Answer 39

Not for Profit Organizations

Question 40

Scholarships and tuition waivers may be displayed as expenditures or as a contra revenue line item

Answer 40

Not for Profit Organizations

Question 41

Patient service revenue, including patient services and other operating revenue. Other operating revenue, including tuition from schools, educational programs, donated supplies and equipment, and specific purpose grants. Nonoperating revenue, gains and or losses including unrestricted interest in dividend income from investment activities, and restricted grants, donated services etc.

Answer 41

Not for Profit Organizations

Question 42

Patients service revenue is recorded on the gross basis using established rates. Note that charity care does not qualify for recognition as revenue. Provisions for a contractual adjustments and discounts are been deducted to arrive at net service revenue. The allowance for uncollectible is treated as an expense for the period during which the services are provided.

Answer 42

Not for Profit Organizations

Question 43

Charity is not recognized as either revenue or expense on the financial statements of a health care organizations. Charity care represents services for which the Health Care organization does not anticipate any cash flows.

Answer 43

Not for Profit Organizations