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
Describe the JE to close budgetary accounts at the end of the year.
DR. Appropriations
CR. Estimated revenues
What budgetary account represents the legally mandated spending limit?
Appropriations
What is the JE to record a PO issued.
DR. Encumbrances
CR. Budgetary fund balance
What is the JE to record a PO filled?
DR. Budgetary fund balance
CR. Encumbrances
What is the JE to record an invoice for goods received?
DR. Expenditures
CR. Vouchers Payable
Is the normal balance of the encumbrance account a credit or a debit?
Debit
What account represents the estimated dollar value of outstanding purchase orders?
The encumbrance account
Deferred outflows and inflows of resources are outflows and inflows that…
Occur in a period but really relate to future periods (prepayment)
When is revenue related to grants, entitlements, shares revenues, etc., that are subject to time restrictions recognized for government accounting?
When the stated time has arrived (until then, deferred inflow of resources is recognized).
Describe the JE to record levy of property taxes that are to be used to finance the subsequent fiscal year.
DR. Property taxes receivable
CR. Est uncollectible property taxes
CR. Deferred inflow of resources
List the categories of net position in government wide financial statements and in enterprise fund level financial statements
- Restricted
- Unrestricted
- Net investment in capital assets
List the fund balance categories for a governments governmental funds.
- Non-spendable
- Restricted
- Committed
- Assigned
- Unassigned
List the sections in the comprehensive annual financial report
- Introductory
- Financial
- Statistical
List the three component parts of net position
- Net investment in capital assets
- Restricted net assets
- Unrestricted net assets
What statement is developed in a functional format that highlights program revenues and cost?
Statement of activities
What are the required government wide financial statements of a government?
Statement of net position
Statement of activities
How is discrete presentation of component units accomplished in the government wide statements
A column of aggregated totals for the component units is added to the right of the primary governments data
List the three requirements necessary to be considered a primary government.
- A separately elected governing body
- A legally separate entity
- Fiscal independence.
Define component units.
Legally separate organizations:
- Fiscally dependent of the primary government.
- The primary government appoints a voting majority.
What fund is always a major fund?
General fund
For what fund is major fund reporting not required
Internal service funds
What criteria are used to determine a major fund
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
What fund and entry is required to record receipt of an endowment where the earnings are to be expanded on a public purpose?
Permanent fund:
DR. Cash
CR. Revenues-endowment principal
Shared revenues received by an enterprise fund should be recorded as
Non-operating revenues
