Final Exam Flashcards
GASB Stmt No. 65 is pertaining to what topic?
subsequent events
What are subsequent events
events that occur after fiscal year end but before the financial statement release
What internal controls weaknesses allowed Rita Crundwell to embezzle so much
segregation of duties
under what code can a municipality file for bankruptcy
chapter 9
What is GASB statement 34
governments account for infrastructure assets just as they do with other capital assets
When can a government (according to GASB stmt 34) avoid charging depreciation?
if the government can demonstrate they are incurring the costs necessary to maintain the assets
governments receive _____ amounts of cash
large
Can GASB tell governments how to invest their funds?
no
Do governments have to disclose investment risk according to GASB?
yes
What is a derivative
a security whose value depends on (derived from) that of some underlying asset, a reference rate, or an index
what chapter of bankruptcy code can local governments file under
chapter 9
can states file for bankruptcy
no- theres not na provision under bankruptcy code
what are bond issues referred to as (not revenue)
other financing sources
general obligation bonds are backed by
the full faith and credit of the government
revenue bonds are backed by
the revenue of whatever it is financing
what is overlapping debt
the obligations of property owners within a particular government for their proportionate share of debts of other governments with overlapping geographic boundaries
Is overlapping debt reported in the financial statements?
No
is overlapping debt disclosed in the notes of the financial statements?
yes
what is conduit debt
when a government issues bonds on behalf of a corporation
do governments have to report conduit debt on FS
no unless the corporation goes bankrupt or something and will be unable to pay then it would have to report it
Do proprietary funds have statement of cash flows?
yes
Do governmental funds have statement of cash flows?
No
The cash flow statement has ____ parts
4
What are the four parts of the cash flow statement
- from operating activities
- from noncapital financing activities
- from capital and related financing activities
- cash flows from investing activities
When do hospitals accrue litigation expense?
When it is probable and measurable OR if it is material ( does not have to be probable and measurable)
What is a component unit
separate and apart from government but government has power over it
Is LSU a component unit?
Yes
What are the three sections that make up the ACFR
intro section, financial section and statistical section
What do governments have to disclose in relation to budgets
original adopted budget, final revised budget and. actual spending
Can GASB govern how governments do their budgets?
No
Is Tulane under FASB or GASB
FASB
Is LSU under FASB or GASB
GASB
When a nonprofit receives a pledge it considers that to be _________
revenue
nonprofits only report the amount of pledges it ______________ as revenue
believes they’ll actually receive
How many types of fund balances do nonprofits have
two
what are the two types of fund balances nonprofits have
restricted and unrestricted
Nonprofits have to disclose how much they spend on ___________ activities
fundraising activities
if ___________, __________ and ____________ are valid then a non profit could say activities are not just fundraising
purpose, audience, and content
if purpose, audience and content are proven by nonprofit it may allocate amount spent between
fundraising and general functions
What is the yellobook
GAO issued governmental auditing standards
what are auditing standards
additional procedures and reports
if more than $___________ of federal money spent in a year then government subject to a ___________
750,000; single audit
what is a single audit
audit conducted that makes sure you are in compliance
cognizant agency definition
whoever gave the largest grant
the threshold in findings report is ______
$25,000
what is the authoritative body for federal
FASAB
Interperiod equity refers to a condition where
current year revenues are sufficient to pay for current year services provided
What is the modified accrual accounting based on?
the flow of current resources approach
the flow of current resources approach is similar to what
cash flow
Which event(s) is (are) supportive of interperiod equity as a financial reporting objective of a governmental unit?
I. a balanced budget is adopted
II. residual equity transfers out equals residual equity transfers in
A. I only
B. II only
C. Both I and II
D. Neither 1 nor II
A. I only
What is the bases of accounting required to be used in the government-wide financial statements?
modified cash basis for both governmental activities and business- type activities
what is an item recognized for governmental activities in the government-wide statement of activities and not the statement of revenues, expenditures and changes in fund balance for governmental funds
transfers between governmental funds
while complying with GASB 34 a government will present separate fund financial statements for its governmental and proprietary funds. the purpose of the presentation is to :
report additional and detailed information about the primary government
a permanent fund of a municipality would have the same measurement focus as a(an):
A. general fund
B. internal service fund
C. custodial fund
D. investment trust fund
A. general fund
All of the following funds use the accrual basis of accounting and the economic resources measurement focus, except:
A. internal service funds
B. investment trust funds
C. capital projects funds
D. private purpose trust funds
C. capital projects funds
do proprietary funds report budgetary accounts or encumbrances
no
At December 31, year 1, the following balances were due from the state government to clare city’s various funds:
capital projects: $300,000
custodial and trust: $100,000
enterprise: $80,000
what amount should be reported in governmental funds as of dec 31
A. $100,000
B. $180,000
C. $300,000
D. $480,000
C. $300,000
