FAR - Deck 3 all units Flashcards
What does the Permanent fund account for?
It accounts for resources that restrict the use of earnings for the use of government and its citizens ex. public cemetary
What are the characteristics of governmental funds?
Fiscal responsibility, non business activities of the government, mostly financed by taxes. Uses modified accrual basis; current fiancial resources measurement; does not report capital assets and LT liabilities.
What the the governmental funds? Use MNEMONIC (Good Dogs Should Pee Close)
1) General fund - accounts for all financial resources not in another fund
2) Debt service fund - restricted, committed or assigned accounts for paying interest and principal (but not the debt itself)
3) Special Revenue fund - restricted or committed inflows from specific revenue (not capital or capital project, can use both earnings and principal)
4) Permanent fund - restricted to the use of earnings (not principal)for governments and its citizens
5) Capital projects fund - financial resource restricted, committed or assigned for capital purpose
What does the proprietary funds account for?
Business type activities of government. They use accrual basis of acctg and have economic resources focus
Name the proprietary funds (EI, think of AI)
1) Enterprise - account for activities that benefit outsiders ex utilities
2) Internal - benefit internal departments ex IT department
What does the fiduciary funds account for?
They account for fiduciary activities of the government. They use accrual accounting and have an economic resources focus.
They report capital assets, LT liabilities and deferred flows of resources.
Name the fiduciary funds (PC PI - think of computer, private investigator)
1) Pension & other employee trust funds
2) Custodial trust funds
3) Private purpose trust funds
4) Investment trust funds
What is the measurement focus and basis of accounting for the government-wide financial statements?
Economic resources measurement focus and accrual basis
What are the functional classification for expenses for an NFP?
Program services and Supporting services
- Program services distribute food and services to members, beneficiaries and customers to fulfill purpose of the entity
- Supporting services are NOT program services and include Management and General, Fundraising and Membership Development
What is the formula for Return on Assets (ROA)?
NI/Avg total Assets
What is the formula for Profit Margin on Sales?
NI/Sales
What is the formula for basic EPS?
NI - Preferred Dividends/Weighted Avg # CS O/S
What is the formula for Asset turnover?
Sales/Avg total Assets
What is contribution support for a NFP?
Contribution support for a NFP include transactions which are unconditional (not requiring a future event to happen) non-reciprocal, voluntary and not of an ownership investment.
