FAR - Government Accounting Part 3 Flashcards

1
Q

For the Statement of Activities in Gov’t Wide Financials, what are the categories for program revenues?

A
  1. Charges for Services
  2. Operating Grants & Contributions
  3. Capital Grants & Contributions

**think of the acronym SOC

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2
Q

For the Statement of Net Position in Gov’t Wide Financials, what are the different columns of data?

A

it must include a section for governmental funds (including Internal Service Funds) and then a section for Business Type Funds (i.e. enterprise funds)

*a prior year comparative is useful but NOT required

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3
Q

In the Statement of Activities for Gov’t Wide Financials, how are non-exchange revenues in support of governmental activities reported?

A

they are reported by tax type in general revenues

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4
Q

How is a property acquired through forfeiture recorded on the statement of net position?

A

it will be capitalized at the lower of cost or market value.

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5
Q

Where does an enterprise fund reporting interest income on the statement of cash flows?

A

in investing activities (not operating like commercial companies)

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6
Q

What fund types require a statement of cash flows?

A

only the propriety funds. governmental and capital projects do not require a statement of cash flows

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7
Q

What is the criteria used for determining of major funds required for reporting in a government’s fund financial statements?

A

10% of revenue, expenditures/expenses, assets, or liabilities for ALL governmental funds OR at least 5% of the total of the associated totals for ALL governmental AND enterprise funds

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8
Q

What is the reconciliation of the change in fund balances in governmental fund financial statements to the change in net position of governmental activities in the government-wide financials?

A

remember the mnemonic “CPAS RIDES”

Net Change in Fund Balance, plus/minus

Capital outlay
Principal payments on LTD
Asset disposals
Sources - other financing
Revenue
Interest expense
Depreciation Expense
internal Service fund net revenue

= change in net position of governmental activities

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9
Q

Where is the reconciliation of individual fund to government wide financial statements reported?

A

it is part of the basic financial statements, NOT part of the MD&A

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10
Q

do the govt wide financials focus on operational and fiscal accountability?

A

only operational accountability; fiscal accountability is not the focus as it is for short term (aka current year performance and compliance)

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11
Q

Valley Village is preparing the reconciliation between the fund balance on the governmental fund balance sheet and the net position on the governmental activities column of the government wide financial statements. The town’s record showed capital assets of $150K, accumulated depreciation of $25k, and non-current debt of $100K. The governmental fund financial statements show fund balance of $85K. What was the amount of Valley Village’s governmental activities net position?

A

$110K

Fund balance: 85K
Capital Assets: 150K
Accumulated Depr: -25K
Non Current Liabilities: -100K

Net Position: $110K

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12
Q

Where is the budget comparison schedule presented?

A

either in the required supplementary information section or in the basic financial statements section

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