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ACC245 > Final > Flashcards

Final Flashcards

1
Q

What is the General Fund?

A

A residual fund used to account for resources not accounted for and reported in some other fund

***Every government has a general fund

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2
Q

What is the Capital Projects Fund?

A

Restricted to spending for capital outlays, including the acquisition or construction of capital facilities and other capital assets

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3
Q

What is the Debt Service Fund?

A

Restricted to spending for principal and interest on general long-term debt

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4
Q

What is the Permanent Fund?

A

Legally restricted so that only the earnings generated by the principal may be used to support programs that benefit the government or its citizens

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5
Q

What is the Special Revenue Fund?

A

Restricted or committed to spending for specified purposes other than debt service or capital projects

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6
Q

What is arbitrage?

A

Borrowing money at a certain interest rate while investing the money at a higher interest rate

The government is not allowed to make a profit

IRC has strict rules and will charge penalties

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7
Q

What are the minimum reporting requirements?

A

Managements discussion and analysis (MD&A)
Government-wide statements
Fund financial statements
Notes to the financial statements
Required supplementary information (RSI)

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8
Q

What is a primary government?

A

Any state government and general-purpose local governments

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9
Q

What is a component unit?

A

Legally separate organizations for which the elected officials of the primary government are financially accountable

Can also be other organizations that would cause the financial statements to be misleading if excluded (significant relationship)

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10
Q

What is the purpose of the Management’s Discussion and Analysis (MD&A)?

A

To provide an overview of the financial statements and help the reader understand the information

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11
Q

What are the minimum reporting requirements for the Management’s Discussion and Analysis (MD&A)?

A
  1. Brief discussion of financial statements
  2. Condensed financial information from the government-wide statements, comparing the current and prior years
  3. Analysis of the government’s overall financial position and results of operation
  4. Analysis of balances and transactions of individual funds
  5. Analysis of budgetary variations
  6. Capital asset and long-term debt activity
  7. Infrastructure assets
  8. Future effects
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12
Q

What needs to be included in Required Supplementary Information, in relation to budget vs actual?

A

Original appropriated budget
Final appropriated budget
Actual inflows, outflows, and balances for the year on the budgetary basis of accounting

***Variance between final and actual (NOT required)

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13
Q

What is an interfund loan?

A

Occur when one fund lends cash to another with a requirement for repayment

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14
Q

What is an interfund transfer?

A

Record flows of assets from one fund to another without equivalent flows of assets in return and without a requirement for repayment

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15
Q

When and how are property taxes recognized?

A

Property tax revenues are recognized in the fiscal period for which the tax is levied, provided the taxes are available.

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16
Q

What does “available” mean when collecting property taxes?

A

Must be collected within the current period or soon enough there after to be used to pay liabilities of the current period (should not exceed 60 days)

17
Q

What are other financing sources? List some examples.

A

Resources not shown in current assets or liabilities

Ex. Interfund transfers, proceeds from debt, and proceeds from the sale of capital assets

18
Q

What are the 5 classifications of fund balance?

A
  1. Restricted
  2. Assigned
  3. Committed
  4. Unassigned
  5. Nonspendable
19
Q

What does restricted mean?

A

External restrictions imposed by creditors or the law

20
Q

What does assigned mean?

A

Internal restrictions which can be removed and reclassified

21
Q

What does committed mean?

A

Constrained as to use as a result of formal action (legislation, resolution, or ordinance)

22
Q

What does unassigned mean?

A

Available for spending for any legal purpose

Residual classification for the General Fund

23
Q

What does nonspendable mean?

A

Not spendable in form

Legally or contractually required to be maintained in tact

24
Q

When is a special-purpose government considered a primary government?

A

When it has a separately elected governing body, is legally separate, and is fiscally independent of other state and local governments.

ACC245 (13 decks)

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