Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CPA Exam > FAR - Governmental Accounting > Flashcards

FAR - Governmental Accounting Flashcards

1
Q

What is the authoritative body for state and local government.

A

Government Accounting Standards Board (GASB)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the characteristics of financial reporting for governments?

A 
Timeliness
Relevance
Understandability 
Comparability 
Consistency
Reliability
TRUCCR (trucker)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q 
According to GASBs conceptual framework, which of the following is not an element of the statement of financial position? 
A. Net position
B. Net assets
C. Assets
D. Liabilities
A

B. Net Assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q 
Which of the following is voluntary information within a general purpose external financial report? 
A. Basic financial statements 
B. Notes to basic financial statements 
C. Required supplemental information 
D. Supplemental information
A

D. Supplemental information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

According to GASBs conceptual framework, who are the primary users of the general purpose external financial report?

A
  1. Taxpayers
  2. School boards
  3. Bond insurers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

According to GASBs conceptual framework, what are the four significant implications of the legally adopted annual budget?

A
  1. Expression of public policy
  2. Expression of financial intent
  3. Form of control
  4. It may provide a basis for evaluating performance
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are governmental funds?

A

Accounts for sources, uses, and balances of general governmental financial resources (e.g. taxes)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are proprietary funds?

A

Accounts for business type activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are fiduciary funds?

A

Accounts for resources held by a government in its capacity as trustee or agent for the benefit of others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What does the “General Government” consist of?

A 
General fund
Special revenue fund
Debt service fund
Capital projects fund
Permanent fund
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is DRIP?

A

Debt service fund
special Revenue fund
Internal service fund
Permanent fund

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is CEG?

A

Capital projects fund
Enterprise fund
General fund

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is PIPPA? Fiduciary funds.

A

Pension fund
Investment trust fund
Private Purpose trust fund
Agency fund

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the two important characteristics of a fund?

A
  1. A fiscal entity

2. An accounting entity (debits = credits)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

When is an enterprise fund most commonly used?

A

When user fees are the primary source of revenue and the fee charged is based on an amount sufficient to cover the costs of operations and to provide for capital maintenance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the fund types that use modified accrual?

A 
General fund
Special revenue fund
Capital projects fund
Debt service fund
Permanent fund
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the types of funds that use accrual accounting?

A 
Internal service funds
Enterprise funds
Pension trust funds
Investment trust funds
Private purpose trust funds
Agency funds
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What does modified accrual accounting focus on?

A

The flow of current expendable financial resources. Similar to the concept of cash flows.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What does accrual accounting focus on?

A

The change in economic resources. Net income determination

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are the revenue recognition criteria under modified accrual accounting?

A

Measurable and Available

21
Q

What is the measurement focus basis of accounting for proprietary fund types?

A

Accrual accounting; flow of economic resources

22
Q

What is the measurement focus basis of accounting for governmental fund types?

A

Modified accrual; flow of current expendable financial resources

23
Q

Which funds are required to report on budgetary accounts?

A

The general fund and major special revenues funds

24
Q

Describe the JE to record a budget at the beginning of the year

A

DR. Estimated revenue

CR. appropriations

25
Q

Describe the JE to close budgetary accounts at the end of the year.

A

DR. Appropriations

CR. Estimated revenues

26
Q

What budgetary account represents the legally mandated spending limit?

A

Appropriations

27
Q

What is the JE to record a PO issued.

A

DR. Encumbrances

CR. Budgetary fund balance

28
Q

What is the JE to record a PO filled?

A

DR. Budgetary fund balance

CR. Encumbrances

29
Q

What is the JE to record an invoice for goods received?

A

DR. Expenditures

CR. Vouchers Payable

30
Q

Is the normal balance of the encumbrance account a credit or a debit?

A

Debit

31
Q

What account represents the estimated dollar value of outstanding purchase orders?

A

The encumbrance account

32
Q

Deferred outflows and inflows of resources are outflows and inflows that…

A

Occur in a period but really relate to future periods (prepayment)

33
Q

When is revenue related to grants, entitlements, shares revenues, etc., that are subject to time restrictions recognized for government accounting?

A

When the stated time has arrived (until then, deferred inflow of resources is recognized).

34
Q

Describe the JE to record levy of property taxes that are to be used to finance the subsequent fiscal year.

A

DR. Property taxes receivable
CR. Est uncollectible property taxes
CR. Deferred inflow of resources

35
Q

List the categories of net position in government wide financial statements and in enterprise fund level financial statements

A
  1. Restricted
  2. Unrestricted
  3. Net investment in capital assets
36
Q

List the fund balance categories for a governments governmental funds.

A
  1. Non-spendable
  2. Restricted
  3. Committed
  4. Assigned
  5. Unassigned
37
Q

List the sections in the comprehensive annual financial report

A
  1. Introductory
  2. Financial
  3. Statistical
38
Q

List the three component parts of net position

A
  1. Net investment in capital assets
  2. Restricted net assets
  3. Unrestricted net assets
39
Q

What statement is developed in a functional format that highlights program revenues and cost?

A

Statement of activities

40
Q

What are the required government wide financial statements of a government?

A

Statement of net position

Statement of activities

41
Q

How is discrete presentation of component units accomplished in the government wide statements

A

A column of aggregated totals for the component units is added to the right of the primary governments data

42
Q

List the three requirements necessary to be considered a primary government.

A
  1. A separately elected governing body
  2. A legally separate entity
  3. Fiscal independence.
43
Q

Define component units.

A

Legally separate organizations:

  1. Fiscally dependent of the primary government.
  2. The primary government appoints a voting majority.
44
Q

What fund is always a major fund?

A

General fund

45
Q

For what fund is major fund reporting not required

A

Internal service funds

46
Q

What criteria are used to determine a major fund

A

10% of total assets and deferred outflows of resources, liabilities and deferred inflow of resources, revenues, or expenditures for the total of all funds in that fund group . 5% for the same element for all governmental and enterprise funds combines

47
Q

What fund and entry is required to record receipt of an endowment where the earnings are to be expanded on a public purpose?

A

Permanent fund:
DR. Cash
CR. Revenues-endowment principal

48
Q

Shared revenues received by an enterprise fund should be recorded as

A

Non-operating revenues

CPA Exam (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions