FAR Flashcards
Measurement focus of Governmental Fund Accounting
- Current financial resources
- modified accrual
Classification of donated services
Revenues and gains without donor restrictions
Fair value is a ____ price
Exit price — the price to sell an asset or transfer a liability
The price in the principal market for an asset or liability will be the fair value measurement
(True or False?)
True
How is total expected gross profit calculated
Sales price - total expected costs
Form 11-K
Annual report of an entity’s employee benefit plan
What forms do not include financial statements
Forms 3, 4 and 5
How do the governmental funds report transfers to other funds
Other financing uses
Debt service fund
accumulation of resources for and the payment of general LT liability (debt) principal and interest
Capital projects fund
Acquisition or construction of capital assets
Special revenue funds
Revenues that are legally restricted for specified purposes, including gasoline taxes to finance road repairs
What is the journal entry for how expenditures are recorded for debt service funds
Dr expenditures — principal
Dr expenditures — interest
Cr cash
Capital projects funds
Established for the construction, purchase, or leasing of significant fixed assets used for general governmental activities
Permanent funds
Used to report resources that are legally restricted and may not be expended; the benefit of the public
Proceeds and transfers in the capital projects fund are reported as
Other financing sources and uses
