FAR 8

Question 1

What is the purpose of separate fund financial statements?

Answer 1

to report additional and detailed information about the primary government

Question 2

what is the most difficult characteristic to report for governmental accounting?

Answer 2

Relevance-

Question 3

What types of governmental units are included in modified accrual and current resource measurement focus?

Answer 3

GRaSPP
General Fund
Special Revenue
Debt service 
Capital projects 
Permanent

Question 4

What is accounting and reporting for proprietary funds similar to?

Answer 4

Its similar to accounting and reporting for a business enterprise with the measurement focus on net income and capital maintenance. (income determination)

Question 5

What are restricted fund balances?

Answer 5

they represent resources whose use have been limited by external sources such as creditors, contributors, other governments, laws, constitutional provisions

Question 6

what are imposed non-exchange revenues?

Answer 6

They represent taxes imposed on non-exchange transactions (fines) or wealth (property taxes)

Question 7

What fund is the fire department paid out of? and what would be the JE?

Answer 7

The fire department is paid out of the general fund and you would
DR Expenditure
CR Salaries Payable

Question 8

what is the JE to record a purchase order?

Answer 8

DR Encumbrance

CR Budgetary Control

Question 9

What does the debt service fund account for?

Answer 9

it accounts for the accumulation of resources for, the payment of general long term debt principal and interest.

Question 10

What government entity must present a statement of cash flows as part of their FS?

Answer 10

For all proprietary funds- that apply to both public benefit corporations and governmental utilities

Question 11

In what type of fund should depreciation expense be reported on?

Answer 11

Proprietary fund

Question 12

What are good examples of internal service funds?

Answer 12

they account for the providing of goods or services by one department to other departments on a cost-reimbursement basis.
Ex: municipal motor pools

Question 13

Which fund should the debt service transaction of a special assessment issue for which the government is not obligated in any manner for special assessment?

Answer 13

Agency fund

Question 14

Which fund would be used if no administrative or direct financial involvement in the construction?

Answer 14

Agency = no monitoring.

if there was monitoring a special revenue fund would be used.