FAR 2

Question 0

The fundamental qualitative characteristics of useful financial information are

Answer 0

Relevance & faithful representation

Question 1

Comparability of government financial reports

Answer 1

Differences between financial repost should be due to substantive differences in underlying transactions or the governmental structure

Question 2

The process of reporting an item in the financial statements of an entity is

Answer 2

Recognition

Question 3

IASB two underlying assumptions

Answer 3

Going concern

Accrual accounting

Question 4

FASB fundamental assumptions

Answer 4

Monetary unit
Historical cost
Periodicity

Question 5

The cumulative effect of a change is accounting principle is shown as

Answer 5

An adjustment to beginning retained earnings

Question 6

Budgetary activity JE

Answer 6

Estimated Revenue control
Appropriations control
Budgetary control

Question 7

Actual activity JE Govt

Principal payment on debt

Answer 7

Debt service- principal expenditure xx

Cash. Xx

Question 8

New debt proceeds are recorded as other financing resources, a resource inflow

Answer 8

Cash. Xxx

Other financing sources– debt proceeds. Xxx

Question 9

Property tax GE （no bad debt expenditure)

Answer 9

Property tax receivable–current xx
Allowance for in collectible taxes-current. Xx
Property tax renenue。 xx

Question 10

Encumbrance activity

Encumbrances. Xxx
Budgetary control. Xxx

Answer 10

Budgetary control. Xxx
Encumbrances. Xxx

Expenditure. Xxx
Vouchers payable. Xxx

Question 11

Inventory of supplies govt JE

The purchase method

Answer 11

Expenditures 5000
Vouchers payable. 5000

Inventory of supply 1000
Non- spendable Fund balance inventory. 1000

Question 12

The consumption method govt JE for inventory

Answer 12

Inventory of supply. 5000
Vouchers payable. 5000

Expenditures. 4000
Inventory of supply. 4000

Question 13

Fund balance classifications

Answer 13

Non-spendable (permanent fund principal)
Restricted
Committed
Assigned
Unassigned positive& negative if over expenditure

Question 14

Government-wide statement of net position

Answer 14

Assets
deferred outflows of resource （consumption of net assets）
-

Liabilities
Deferred inflows of resources （acquisition of net asset)
=
Net position

Question 15

“tax position” as used in FASB refers to

Answer 15

The characterization of income or a decision to exclude reporting taxable income in a tax return
A decision not to file a tax return
An allocation or a shit of income between jurisdictions
A decision to classify a transaction, entity, or other position in a tax return as tax exempt
An entity’s status, including its status as a pass-through entity or a tax-exempt not for profit entity

Question 16

The govt-wide financial statements consist of

Answer 16

Statement of net position
&
Statement of activity

Question 17

The effective interest rate for a loan restructured in a troubled debt restructuring is based on:

Answer 17

The original contractual rate

Question 18

Nongovernmental not-for-profit entities are required to provide

Answer 18

The statement of financial position
The statement of Activities
Statement of cash flows

Question 19

FASB: An unrestricted cash contribution should be reported as

Answer 19

Operating Activities

Question 20

cash received from contributions restricted by donors for noncurrent purposes such as fixed asset construction, acquisition or improvement, term endowments or permanent endowments are classified as

Answer 20

Financing activities

Question 21

cash received from investment income restricted by donor stipulation to the same purpose are reported as

Answer 21

financing activities