FAR 10 Flashcards
A budgeted excess of revenues of appropriations should be?
Credited to budgetary control.
Dr. Estimated Revenues
Cr. Appropriations
Cr. Budgetary Control (Excess)
The estimated revenues control account of a governmental unit is debited?
The budget is recorded.
Dr. Estimated Revenue Control
Cr. Budgetary Control
Estimated revenue control account is part of the budget.
The encumbrance account of a governmental unit is debited when?
A purchase order is approved. Dr. Expenditures Cr. Vouchers Payable Dr. Budgetary Control Cr. Encumbrance
If a city legally adopts its annual general fund budget on the modified accrual basis of accounting, its estimated revenues should be?
Reported on the modified accrual basis of accounting in the general fund budgetary comparison schedule.
What should be recorded in contribution revenue in the statement of activities?
Restricted by the donor to be used for meals for the children and the payment above the FMV of the subscriptions.
What is required for presentation within a government’s required supplementary information?
Actual financial performance presented in a manner consistent with the budget.
Final Amended budget.
Originally adopted budget.
What is the basic criterion used to determine the reporting entity for a governmental unit?
Financial accountability.
Property taxes and fines represent which of the following classes of non exchange transactions for governmental units?
Imposed non-exchange revenues.
GASB C60.107 indicates that a government’s compensated absences liability should normally
be calculated based on the pay or salary rates in effect AT THE BALANCE SHEET DATE.
Reporting of general infrastructure assets by all public institutions that report as special-purpose governments either engaged only in governmental activities or engaged in both governmental and business type activities is:
Required using the full governmental model.
What are some types of unrestricted revenues?
Cash contribution used at the board of directors discretion.
Contributed legal services which someone would have otherwise purchased.
What isa type of temporaily resricted revenue?
A promise to contribute a specified amount to an organization should be recorded as income immediately upon receipt of the promise. If it is not going to be collected until the following year, it should be considered TEMPORARILY RESTRICTED at NRV.
A statement of cash flows should be presented for what type of fund only?
Proprietary Fund using the direct method of presenting cash flows from operating activities.
Monies held in trust for the benefit of parties who are not a part of government are accounted for in which type of fund?
Private-Purpose trust funds.
Resources held for the benefit of others are reported in the?
Fiduciary funds.
Unless required to be reported elsewhere, how should escheat property, held for a short period of time for another governmental entity, be reported?
As an assets in an AGENCY FUND, offset by a liability.
When should a private purpose trust fund be used?
When principal and income are reported.
In a statement of activities of the People’s Environmental Protection Association, a voluntary community organization, depreciation expense should:
Be included as an element of expense.
When should you classify income as unrestricted revenue?
When resources are under control of the governing board and not specifically restricted by an outside donor.
What not for profit entity is required to prepare a statement of functional expense showing natural expense classifications?
A shelter for the homeless.
In the government-wide financial statements, what is the correct revenue classification of fines and forfeitures?
Charges for services.
How do you calculate “net investment in capital assets”?
The total of capital assets less depreciation and outstanding mortgages or bonds reduced by any significant unspent proceeds.
What should the gov’t disclose concerning reverse repurchase and fixed coupon reverse repurchase agreements?
Underlying securities owned should be reported as “investments.” RELATED ASSETS AND LIABILITIES SHOULD NOT BE NETTED.
A city received a donation of a valuable painting. The city planned to add the painting to its collection and display it. They have a policy that if such donated art work were sold, the proceeds would be used to acquire other items for its collections. How do you record this?
May be capitalized, but it is not required, and depreciation is not required.
