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FAR NEW > FAR 3 > Flashcards

FAR 3 Flashcards

1
Q

What does a derived (non exchange) tax revenue represent?

A

Taxes imposed on or derived from exchange transactions such as commercial sales (sales tax).

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2
Q

What are examples of imposed non-exchange revenues?

A

Property taxes

Fines

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3
Q

How do you record issuing a purchase order (commitment to purchase) in a governmental fund (modified accrual basis)?

A

Dr. Encumbrance

Cr. Budgetary Control

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4
Q

How do you calculate the remaining amount of funds available?

A

Appropriations
Less: Expenditures
Less: Encumbrances

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5
Q

What is an Encumbrance?

A

Commitments or assignments of the fund balance for purchase orders and represent a reduction of available appropriations.

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6
Q

What are appropriations?

A

A budgetary account that represents the governmental units approved spending.

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7
Q

How does the general fund record salaries and wages incurred during the month?

A

Dr. Expenditures-salaries

Cr. Salaries payable

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8
Q

A balanced budget demonstrates?

A

Interperiod Equity.

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9
Q

How do you record the JE when property taxes are levied?

A

Dr. Property taxes rec.
Cr. Alllowance for uncol.
Cr. Revenues

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10
Q

How do you record a JE when a purchase order is issued?

A

Dr. Encumbrances

Cr. Budgetary Control

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11
Q

The estimated revenues control account of a governmental unit is debited when?

A

The budget is recorded.

Dr. Estimated rev cont.
Cr. Budgetary Cont.

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12
Q

The expediture element “salaries and wages” is an example of which type of classification?

A

Object

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13
Q

Function classifications groups related activities that are?

A

Related to activities that are aimed at accomplishing a major service or regulatory responsibility.

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14
Q

What basiss of accounting does GASB recommend that governmental fund budgets be prepared?

A

Modified accrual.

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15
Q

When an asset is purchased by the gov’t and it is received, it should be recorded in the?

A

General Fund as an Expenditure
Dr. Expenditures
Cr. Vouchers Payable

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16
Q

Expenditures of a gov’t unit for insurance extending over more than one accounting period should be?

A

Allocated between or among accounting periods or may be accounted for as expenditures of the period of acquisition.

17
Q

How do you record the issuance of the purchase orders and contracts?

A

Dr. Encumbrances

Cr. Budgetary Control

18
Q

How do you record a budget?

A

Dr. Estimated Revenues
Cr. Appropriations
Cr. Budgetary Control

19
Q

What are classified as estimated revenues?

A

Property Taxes, licenses, fines.

20
Q

What are considered estimated other financing sources?

A

Proceeds of debt issue Interfund Transfer

21
Q

How do you record the JE when supplies and invoice are received?

A

Dr. Budgetary Control
Cr. Encumbrances
Dr. Expenditures (actual)
Cr. Vouchers Payable

22
Q

How do you record the entry when the purchase order was issued?

A

Dr. Encumbarances

Cr. Budgetary Control

23
Q

How do you calculate the total fund balance?

A

Total assets-Tot Liabilities
Also, if appropriations do not lapse at year end, the remaining budgetary control (open purchase orders) must be reported as part of the committed or assigned portion of the fund balance.

24
Q

An encumbrance account of a governmental unit is debited when?

A

A purchase order is approved.

25
Q

WHat account of a governmental unit is credited when taxpayers are billed for property taxes?

A

Revenues.

26
Q

When are appropriations credited?

A

When the budget is recorded at the beginning of the year.

27
Q

The estimated revenue account is eliminated when?

A

The budgetary account is closed.

28
Q

Encumbrances outstanding at year end in a state’s general fund would most likely be reported as?

A

Fund balance commitment in the general fund.

29
Q

How do you record the entry when appropriations exceed estimated revenues at the beginning of the year?

A

Dr. Est Rev
Dr. Budg Control
Cr. Appropriations Cont.

30
Q

How do you record the entry when expenditures and encumbrances are less than appropriations at the end of year?

A

Dr. App Control
Cr. Est Rev
Cr. Budg Control

31
Q

How would you record receving state appropriations?

A

Nonoperating Revenues because Non exchange transaction that are not derived from operations.

32
Q

What is the major difference between an exchange transaction and a non exchange transaction for governmental units?

A

The relationship between the amount of value given and received. (Exchange would be of equal value and non exchange would not)

33
Q

Encumbrances would not appear in?

A

Proprietary or fiduciary funds

34
Q

What is the difference between the purchase method of accounting for inventory and the consumption method?

A

The purchase method initially records additions to inventory as expenditures.

35
Q

What do estimated revenues include?

A

Property Taxes
Licenses and permits
Intergovernmental revenues

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