F9 - Governmental Accounting (Part B) Flashcards
The reconciliation of the change in fund balance in governmental fund financial statements to the change in net position for governmental activities in government-wide financials is computed using what Mnemonic?
“GOES BARE”
change in “G”overnmental Fund Balance
“O”ther financing sources
“E”xpenditures - Capital Outlay (net of depreciation)
internal “S”ervice Fund Net Income
= Change in Net position in government-wide financial statements.
“B”asis of Accounting
“A”dditional accrued
“R”evenues and
“E”xpenses
The focus of government-wide financial statements is the government’s responsibility to report the extent to which they have met their:
Operating objectives efficiently and effectively, using all resources available for that purpose, and the extent to which they can continue to meet their objectives for the future.
A comprehensive annual financial report (CAFR) is divided into three sections:
An introductory section, the basic financial statements along with other required supplementary information mandated by GASB #34 and the statistical section. The statistical section, by definition, is not part of the basic financial statements.
Fiscal accountability takes a _______________ view that focuses a reader on what?
Short-term
Compliance and current year performance.
Basic financial statements are defined as:
Government-wide financial statements, fund financial statements, and notes to the financial statements.
The basic financial statements and required supplementary information should consist of:
Management’s Discussion and Analyses (MD&A), Basic Financial Statements, and Required Supplementary Information.
Management’s Discussion and Analysis is a required component of the required supplementary information…
Preceding the basic financial statements for general-purpose governments.
Government-wide financial statements should classify net assets as:
Net investment in capital assets, restricted, and unrestricted
The criteria for determining major funds includes qualifications as to:
Revenues, expenditures/expenses, assets, or liabilities that are at least 10 percent of the associated total for ALL governmental OR enterprise AND at least 5 percent of the total of the associated totals for ALL governmental AND enterprise funds.
Presentation of the computed variance between the final budget and actual results is:
Optional and Not Required
In preparing government-wide financial statements for a governmental entity, interfund receivables and payables between governmental and enterprise funds should be:
Reported as internal balances.
Only investments with original maturities of __ months or less qualify as cash equivalents.
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