FAR - Governmental Accounting Flashcards
What is the authoritative body for state and local government.
Government Accounting Standards Board (GASB)
What are the characteristics of financial reporting for governments?
Timeliness Relevance Understandability Comparability Consistency Reliability TRUCCR (trucker)
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
B. Net Assets
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
D. Supplemental information
According to GASBs conceptual framework, who are the primary users of the general purpose external financial report?
- Taxpayers
- School boards
- Bond insurers
According to GASBs conceptual framework, what are the four significant implications of the legally adopted annual budget?
- Expression of public policy
- Expression of financial intent
- Form of control
- It may provide a basis for evaluating performance
What are governmental funds?
Accounts for sources, uses, and balances of general governmental financial resources (e.g. taxes)
What are proprietary funds?
Accounts for business type activities
What are fiduciary funds?
Accounts for resources held by a government in its capacity as trustee or agent for the benefit of others
What does the “General Government” consist of?
General fund Special revenue fund Debt service fund Capital projects fund Permanent fund
What is DRIP?
Debt service fund
special Revenue fund
Internal service fund
Permanent fund
What is CEG?
Capital projects fund
Enterprise fund
General fund
What is PIPPA? Fiduciary funds.
Pension fund
Investment trust fund
Private Purpose trust fund
Agency fund
What are the two important characteristics of a fund?
- A fiscal entity
2. An accounting entity (debits = credits)
When is an enterprise fund most commonly used?
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
What are the fund types that use modified accrual?
General fund Special revenue fund Capital projects fund Debt service fund Permanent fund
What are the types of funds that use accrual accounting?
Internal service funds Enterprise funds Pension trust funds Investment trust funds Private purpose trust funds Agency funds
What does modified accrual accounting focus on?
The flow of current expendable financial resources. Similar to the concept of cash flows.
What does accrual accounting focus on?
The change in economic resources. Net income determination
What are the revenue recognition criteria under modified accrual accounting?
Measurable and Available
What is the measurement focus basis of accounting for proprietary fund types?
Accrual accounting; flow of economic resources
What is the measurement focus basis of accounting for governmental fund types?
Modified accrual; flow of current expendable financial resources
Which funds are required to report on budgetary accounts?
The general fund and major special revenues funds
Describe the JE to record a budget at the beginning of the year
DR. Estimated revenue
CR. appropriations
