Brainscape's Knowledge GenomeTM

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


See full index

Financial Accounting and Reporting > Flashcards > Flashcards

Flashcards

1
Q

Estimated Liabilities - Premiums

A

offers to stimulate sales; cost is charged to sales in the period that benefit from the offer. # of outstanding offers must be estimated accurately to reflect the current liability at the end of each period.

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

Estimated Liabilities - Warranties

A

liability account must be established if the cost of the warranty can be reasonably estimated. Entire liability should be accrued in the year of the sale to match the cost with the corresponding revenue.

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

Estimated Liabilities - Service Contracts

A

Cash received in advance of when the related expense occurs. Unearned revenue and are estimated and accrued in the financial statements.

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

Accrued Liabilities

A

expense recognized or incurred but not yet paid (Ex: Bonuses)

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

Classification of contingencies (GAAP)

A

Probable - likely to occur ; reasonably possible - more than remote; but less than likely ; remote - slight chance of occurring

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Loss Contingencies-Loss Probable & Can Be Reasonably Estimated

A

Record JE; Dr Exp/Cr Liab for the best estimate of the loss to be recognized. If a range is given; the lower of the range is used for GAAP. Mid range for IFRS.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Loss Contingencies-Loss Reasonably Possible

A

Disclose but do not accrue

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

Loss Contingencies-Loss is Remote

A

Ignore but disclose if made for guarantee type remote loss contingencies such as co-x debts; guarantee to repo receivables; commercial bank obligations under standby letters of credit

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

Gain Contingencies

A

Do not accrue (conservatism) but disclose; being careful not to mislead as to the likelihood of realization

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

Subsequent Event

A

event or transaction occurring after B/S date but before the F/S are issued or available to be issued (2 types: recognized and nonrecognized)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Recognized Subsequent Event

A

Existed at B/S date. Must be recognized in the F/S.

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

Nonrecognized Subsequent Event

A

Did not exist at B/S date. Do not accrue; but disclosures should be made.

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

Subsequent Event Evaluation Period

A

Public companies - through the date that the F/S are issued. All other entities - date that the F/S are available to be issued.

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

Fair Value Option for Financial Instruments

A

On specified election dates; entities may choose to measure eligible financial instruments at FV. Unrealized gains and losses are reported in earnings; the option is irrevocable and is applied to individual financial instruments.

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

Derivative Instrument

A

###############################################################################################################################################################################################################################################################

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

Hedging

A

use of a derivative to offset anticipated losses or to reduce earnings volatility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Option Contract

A

gives one party the right but not the obligation to buy (call) or sell (put) something to the other party at a specified price. Option buyer must pay a premium to the seller to enter into the contract.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Futures Contract

A

Publicly Traded agreement between two parties to exchange a commodity or currency at a specified price on a specified date. One party takes a long position (buy) and another takes a short position (sell)

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

Forward Contract

A

Privately Negotiated contract; similar to futures

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

Swap Contract

A

Private agreement between two parties to exchange cash payments. (interest rate swaps; currency exchange swaps; equity swaps; commodity swaps; etc.); Equivalent to a series of forward contracts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

B/S treatment of Derivative Instruments

A

Either assets or liabilities depending on the rights or obligations under the contract (all measured at FV)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Gains and Losses for Derivatives that are not designated as hedges

A

recognized on I/S

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Gains and Losses for Derivatives designated as Fair Value Hedge

A

designed to hedge the exposure to changes in fair value of a recognized asset or liability. Included in current earnings as an offset to the gain/loss from the change in FV of the hedged item

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Gains and Losses for Derivatives designated as Cash Flow Hedge

A

###############################################################################################################################################################################################################################################################

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Gains and Losses for Derivatives designated as Foreign Currency Fair Value Hedge

A

designed to hedge the exposure to changes in fair value of foreign currency translation. Included in current earnings as an offset to the gain/loss from the change in FV of the hedged item

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Gains and Losses for Derivatives designated as Foreign Currency Cash Flow Hedge

A

###############################################################################################################################################################################################################################################################

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Gains and Losses for Derivatives designated as Foreign Currency Net Investment Hedge

A

###############################################################################################################################################################################################################################################################

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Dual Objectives of Governmental and NFP accounting and reporting

A

Operational accountability (F/S) and Fiscal accountability ($ used for purpose intended)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Fund

A

Sum of $ or other resource segregated for the purpose of carrying on a specific activity or attaining certain objectives in accordance with specific regulations; restrictions; or limitations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Fund structure - three types

A

Governmental; Proprietary; Fiduciary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Government-wide presentation of F/S

A

Full accrual accounting and economic resources measurement focus

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Dual Perspective Reporting

A

###############################################################################################################################################################################################################################################################

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Governmental Funds

A

###############################################################################################################################################################################################################################################################

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Proprietary Funds

A

Full accrual accounting and economic resources measurement focus; SE (internal service funds; enterprise funds) Carries everything. Statement of Net Position; Stmt of Revenues; Expenses; & Changes in Fund Net Position. Expenses; not expenditures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Fiduciary Funds

A

Full accrual accounting and ecomomic resources measurement focus; PAPI (pension; agency; private purpose; investment trust) Carry everything; Stmt of Fiduciary Net Position; Stmt of Changes in Fiduciary Net Position

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

MAC-GRSPP / SPACE

A

Modified Accrual Current Fin Resources measurement focus GRSPP / SE PAPI Accrual accounting; Carry FA and LTD; Economic resources measurement focus

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Governmental B/S Measurement Focus - Current

A

(GRSPP) Modified Accrual; only CA & CL are included on the B/S. No FA & No non-current liabilities are reported

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Governmental B/S Measurement Focus - Economic

A

(SE PAPI) Full Accrual; All assets are included on the B/S; including deferred transactions classified as deferred ouflows/inflows. Net position is reported in 3 components: net investment in capital assets; restricted; and unrestricted.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Governmental I/S Basis of Accounting - Modified

A

(GRSPP) Revenue is recognized when measurable and available (collectible within 60 days of year end). Expenditures are generally recorded when the related fund liability is recorded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Governmental I/S Basis of Accounting - Full Accrual

A

(SE PAPI) Identical to accounting methods used in commercial enterprises. Revenue is recognized when earned and expenses are recognized when incurred.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Classification of Governmental Fund Balance Constraints

A

NU CAR (Nonspendable; Unassigned; Committed; Assigned; Restricted)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Non-spendable fund balance

A

CA that cannot be spent (Ex prepaid expenses; inventories; etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Restricted fund balance

A

Restricted by external authorities (legislation; creditors; grantors; bond covenants; etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Committed fund balance

A

Obligated by formal action of the gov’t highest decision making authority (resolutions; encumbered; appropriations; etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Assigned fund balance

A

Funds that the gov’t intends to obligate but has not formally committed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Unassigned fund balance

A

spendable assets neither restricted; committed; nor assigned. Residual equity classification for the general fund. Only the general fund should have a positive unassigned fund balance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Differences between Commercial GAAP and Governmental Funds

A

Comm. I/S->RE->B/S->Next Year // Governmental: Book (Budget/Activity/Encumbrances) then close the same to B/S -> Next year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

BAE (Governmental Modifed Accrual)

A

Budgetary - emphasized to control spending; Activity - emphasizes flow of current financial resources; Encumbrance - used to record purchase orders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Budgetary Accounts

A

estimated accounts which are opposite from the natural Dr & Cr balances. Only posted twice a year; beginning and end; unless a supplemental appropriation is made.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Budgetary Control account

A

The budgetary equity account. Beg of year: difference between estimated revenues and appropriations goes here.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Budget Accounting - Beginning of year

A

Dr. Estimated Revenue Control; Dr Estimated other financing sources; Cr Appropriations Control; Cr Estimated other financing uses; Dr. Budgetary control if negative; Cr if positive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

Budget Accounting - End of Year

A

J/E reverses the entry that was made at the beginning of the year line for line; (+/-) any amendments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Activity - Revenue

A

Recorded when measurable and available (w/in 60 days of year end)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

Activity - Expenditures

A

###############################################################################################################################################################################################################################################################

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

Timing of expenditure recognition consistent with accrual accounting

A

Governed when the voucher payable is recorded; do not delay the expenditure until the cash payment is made.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Alternatives for expenditure recognition

A

For current assets only - 1-Purchase method: expenditure the assets when they are purchased; reverse items not used at year end. 2-Consumption method: set up as current asset when purchased and expenditure as consumed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

Transfers between funds

A

move money. Not an expenditure; not spending. Dr other financing uses; Cr cash

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Character of Governmental Expenditures

A

Current - period exp; Capital outlays - FA (present & future); Debt Service - Pay off LTD (prior; current; future); Intergovernmental - transfer from one unit to another.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Activity - Assets

A

Purchased; constructed; leased - expenditured; not capitalized. Expenditure timed when liability in incurred; not when payment in cash is made.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Activity - Debts

A

Other financing sources; do not carry or record LTD. Debt repayment is both interest and principal expenditures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

Encumbrances

A

Open POs represent an encumbrance or commitment of the available appropriations of a government. Not typically used for recurring exp such as salaries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

JE to set up encumbrance

A

Dr Encumbrance & Cr Budgetary Control (reduces fund balance). Can reverse to adjust estimate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

JE to record actual expenditure after encumbrance

A

Dr expenditures; Cr Vouchers Pay or Cash

64
Q

Encumbrances outstanding at year end (open PO)

A

If appropriations do not lapse; reverse the JE and include outstanding encumbrances in an appropriate fund balance classification. (ex: fund balance - committed)

65
Q

Expenditures from prior year

A

###############################################################################################################################################################################################################################################################

66
Q

Deferred Outflows

A

Consumption of net assets that is applicable to a future reporting period. Have a positive effect on net position

67
Q

Deferred Inflow

A

Acquisition of net assets that is applicable to a future reporting period. Have a negative effect on net position

68
Q

Govt-wide Stmt of Net Position

A

Assets and Deferred Outflows - Liabilities and Deferred Inflows = Net Position

69
Q

Govt Fund Balance Sheet

A

Assets + Deferred Outflows = Liabilities + Deferred Inflows of Resources + Fund Balance

70
Q

Proprietary and Fiduciary Stmt of Net Position

A

Assets and Deferred Outflows - Liabilities and Deferred Inflows = Net Position

71
Q

Service Concession Arrangements

A

Payments by an operator to a government for the right to operate and collect user fees from 3rd parties on infrastructure or other assets. (EX: tollway)

72
Q

Derivative Instruments and Hedge Accounting

A

###############################################################################################################################################################################################################################################################

73
Q

When to terminate hedge accounting

A

When hedges are no longer effective; when expected transactions are no longer probable; when hedged transactions are executed; and when hedged assets or liabilities are removed from the B/S.

74
Q

Special Revenue Funds

A

Revenues and expenditures that are legally restricted or committed for specific purposes other than debt service or capital projects. Life may be limited or unlimited but resources are expendable.

75
Q

Expendible Trust Activities

A

Funding whose principal and income may be expended in the course of their designated operations so they are depleted by the end of their designated lives. GASB 34 says they should be accounted for in a Special Revenue Fund. (Ex: scholarship fund)

76
Q

Special Revenue Grant

A

Monitoring = Special Revenue Fund / Non-Monitoring = Agency

77
Q

Debt Service Fund

A

Accumulation of resources and the payment of currently due interest and principal on long term GO debt. Pays off debt of GRSPP funds; NOT SE PAPI funds. Encumbrance accounts are NOT USED

78
Q

Capital Projects Fund

A

(Purchasing) Construction; Purchase; or Leasing of significant FA (GRSPP; not SE PAPI) Life is short (1-3 years)

79
Q

Capital Grants

A

If received in advance - recorded as liability and displayed as earned as they are expended. If unrestricted; revenue now; if restricted; deferred revenue. When spent; reverse the classification as deferred revenue to just revenue.

80
Q

Special Assessments

A

If governmental unit is liable; account for through the appropriate govt fund. If not; use agency fund.

81
Q

Bond Issue Proceeds (Capital Projects Fund)

A

Presented on the Stmt of revenues; expenditures; and changes in fund balance as other financing sources. NOT LTD

82
Q

Permanent Fund

A

###############################################################################################################################################################################################################################################################

83
Q

Internal Service Fund

A

The other department/fund is the customer; not the citizen. Established to finance and account for services and supplies provided exclusively to other depts within a govt; typically on a cost reimbursement basis

84
Q

SE PAPI BAE BAE

A

not used. Exam trick; BAE BAE only used for GRSPP funds

85
Q

Net Position - Proprietary Funds

A

RUN; restricted; unrestricted; net investment in capital assets. NOT Fund Balance like in GRSPP.

86
Q

Internal Service Fund - Reconciling Item

A

Frequently combined with governmental funds for the govt-wide financials. GRSPP + S. E-separate and PAPI excluded.

87
Q

Enterprise Fund

A

similar to private business enterprise. Shown separately on Financials. Ex: DIA. Activity is financed with debt secured by a pledge of net revenue from fees and charges.

88
Q

Operating vs. Nonoperating revenues

A

Operating - charge for services/nonoperating - shared revenues (collected by one govt and shared with another) and interest / investment income.

89
Q

Presentation of line items on a proprietary fund Stmt of Revenues; Expenses; and Changes in Fund Net Position

A

INCASET - Income (operating); Nonoperating income & expense; Capital Contributions; Additions to endowments; special items (U or I); extraordinary items; transfers

90
Q

Muni Landfills

A

Cost of equipment expected to be installed; gas monitoring and collection system; final cover (capping). Adjust annually and amortize over years leading up to closure; similary to ARO.

91
Q

Properietary Funds - Stmt of Cash Flows

A

Order switched. Normally O; I; F. Operating; Noncapital Financing; Capital Financing; investing

92
Q

Fiduciary Funds - Stmt of Cash Flows

A

NOT required. Trust funds do not use them

93
Q

Agency Fund

A

Collects cash to be held temporarily for an authorized recipient to whom it will be later disbursed.

94
Q

Clearance Funds - Cash Conduit Arrangements

A

###############################################################################################################################################################################################################################################################

95
Q

Agency Trust Fund Statement of Fiduciary Net Position

A

CA=CL. No year end balance; no net position; no I/S; no C/F Stmt

96
Q

Private purpose trust

A

###############################################################################################################################################################################################################################################################

97
Q

Correct fund use for restricted funds

A

Public use; interest and principal (expendable) - special revenue / Public use; interest only (non-expendable) - permanent / Private use; interest and/or principal (expendable) - Private purpose fund

98
Q

Investment Trust Funds

A

Govt entity that sponsors one of more external investment pools should report the external portion of each pool as a separate investment trust fund

99
Q

Operational Accountability

A

Govt wide F/S - focus is to report the extent to which the govt has met its operating objectives efficiently and effectively.

100
Q

Fiscal Accountability

A

Fund F/S - focus is to demonstrate that the govt has complied with decisions in the raising and spending of funds

101
Q

GASB 34 Integrated Approach

A

1 - MD&A; 2-Gov’t wide & Fund F/S (Reconciled); then notes; 3-Required supplementary info

102
Q

Primary Government Entity

A

reports by itSELF: Separately Elected; Legally separate; Fiscally independent

103
Q

Component Unit

A

Primary govt is financially accountable OR by its nature and significance of its relationship with the primary govt; it cannot be excluded from the primary govt’s F/S without making the primary govt F/S misleading or incomplete.

104
Q

Blended Presentation of Component Units

A

So intertwined that they are; in substance; the same as the primary govt; the CU serves the primary govt exclusively or almost exclusively; the CU is not a separate legal entity

105
Q

Discrete Presentation of Component Units

A

Used when the criteria for blended presentation are not met (most common or default method)

106
Q

Reporting NFP entities as CU of Govt

A

NFP providing ongoing support to a primary govt or to a CU of primary govt may also be a CU of primary govt (Ex: private foundations assoc w/state universities or private foundations assoc w/public health care facilities)

107
Q

Criteria for Discrete Presentation

A

###############################################################################################################################################################################################################################################################

108
Q

MD&A

A

###############################################################################################################################################################################################################################################################

109
Q

Govt wide F/S - Stmt of Net Position

A

Economic resources measurement focus & full accrual. Fiduciary funds are excluded and CU are included.

110
Q

Govt wide F/S - Stmt of Net Position - Capital Assets

A

Capitalization of construction period interest is not required for govt. Infrastructure should be recorded as general capital assets. Only reported here because of the incompatibility with recording these assets at the fund level.

111
Q

Modified approach for infrastructure assets

A

###############################################################################################################################################################################################################################################################

112
Q

Artwork and historical treasures

A

Govts should capitalize at historical cost or FV at date of donation. They may elect not to capitalize if held for exhibition; protected; and org policy exists to have proceeds from sales used to acquire other items for collections.

113
Q

Program Revenue Categories

A

SOC; Service Charge; Operating Grants; Capital Grants

114
Q

Major Fund Reporting Criteria

A

###############################################################################################################################################################################################################################################################

115
Q

Reconciliation of B/S between Fund & Govt wide

A

GALS BARE GRSPP fund balance + assets (Non current) - liabilities (non current) + service (internal) fund net position + basis of accounting accrued revenues and expenses

116
Q

Reconciliation of I/S between Fund & Govt wide

A

GOES BARE GRSPP fund balance + other financing sources - expenditure - capital outlay; net of depreciation + service (internal) fund net income + basis of accounting additional accrued revenues and expenses

117
Q

Differences between Govt C/F and Commercial C/F

A

###############################################################################################################################################################################################################################################################

118
Q

Fiduciary Funds in Govt Wide F/S

A

NOT included

119
Q

Notes to Govt wide F/S

A

description of govt wide activities noting the exclusion of the fiduciary funds; policies relating to elimination of internal activity; description of modified approach to reporting infrastructure; revenue recognition for modified accrual (60 days); etc.

120
Q

Budgetary Information

A

Required supplementary info - must show original budget; final amended budget; and actual amounts. Computation of variances or differences is optional.

121
Q

Reciprocal Interfund Activity

A

Interfund loans - temporary extensions of credit to other funds that are expected to be repaid (due to/due from) & Interfund Services Provided and Used - sales and purchases at external pricing - accounted for as revenues and expenses/expenditures

122
Q

Nonreciprocal Interfund Activity

A

###############################################################################################################################################################################################################################################################

123
Q

F/S Displays and disclosure (Interfund)

A

###############################################################################################################################################################################################################################################################

124
Q

Classification of net assets (NFP)

A

unrestricted; temporarily restricted; permanently restricted

125
Q

NFP Required F/S

A

Statement of Financial Position (B/S); Statemene of Activities (I/S); Statement of C/F; and Statement of Functional Expenses (required for voluntary health and welfare orgs and encouraged for other orgs)

126
Q

NFP Net Assets - Unrestricted

A

Financing of general ops and may be expended at the discretion of the governing board. Internal board-designated funds are considered unrestricted

127
Q

NFP Net Assets - Temporarily Restricted

A

Donor-imposed stipulations either expire with the passage of time or can be fulfilled and removed by actions of the organization

128
Q

NFP Net Assets - Permanently Restricted

A

Result from contributions and other net inflows whose use is limited by donor-imposed stipulations that neither expire with the passage of time nor can be fulfilled or otherwise removed by actions of the organization

129
Q

NFP Statement of Activities

A

4 elements: Change in unrestricted net assets; change in temp restricted net assets; change in perm restricted net assets; and change in total net assets

130
Q

Expense classification in the Statement of Activities

A

Reported as decreases of unrestricted net assets. Categories: program services; support services; combined costs

131
Q

Statement of C/F (NFP)

A

Either direct or indirect; 3 categories like with commercial accounting

132
Q

NFP Statement of C/F (Financing)

A

Cash transactions related to borrowing; and also cash transactions related to certain restricted contributions (increases to endowments; purchases of assets; annuity agreements; etc)

133
Q

NFP Statement of C/F (Investing)

A

Proceeds from sale of works of art; or purchases of works of art; investment in equipment; etc.

134
Q

Functional Classifications of Expenses

A

Program Support Expense; Fund Raising Expenses; Management and Genral Costs; Multiple Cost Items

135
Q

Unconditional Promises

A

(Pledge = revenue) recorded at FV when the promise is made (written or verbal)

136
Q

Conditional Promises

A

depends on an occurrence of a future and uncertain event. Recognition does not occur until the conditions are substantially met

137
Q

Multi Year Pledges

A

###############################################################################################################################################################################################################################################################

138
Q

Split interest Agreements

A

NFP receiving benefits that are shared with other beneficiaries. Temporarily restricted; should be measured at FV at the date of acquisition.

139
Q

Donated Services

A

###############################################################################################################################################################################################################################################################

140
Q

Recording Promises to Contribute - Unrestricted

A

Dr Pledge Receivable; Cr Allow; Cr Contrib revenue - temp restricted. When collected; Dr Cash; Cr pledge receivable - temp restricted

141
Q

Recording Promises to Contribute - Restricted

A

Cannot Debit expense until funds are in an unrestricted state

142
Q

Agency transactions

A

resources received by the NFP over which the NFP has little or no discretion or variance power

143
Q

Exchange Transactions

A

amount transferred - fair value dues or purchase = contrib revenue

144
Q

Recipient accounting - without variance power

A

assets at FV are recognized as a liability to the beneficiary

145
Q

Recipient accounting - with variance power

A

assets at FV are recognized as contrib revenue when received and expensed when distributed to the beneficiary

146
Q

Special funds used in NFP accounting - endowments

A

permanent - principal cannot be spent; term - held for a specified time; quasi- internal governing board has determined that the funds are to be retained and invested for a specified purpose (not restricted)

147
Q

Fund Accounting for NFP

A

NOT used for external reporting; for internal use only. Unrestricted current funds; restricted current funds; plant funds; loan funds; endowment funds; annuity and life income funds; agency funds

148
Q

College/University Industry Specific Accounting

A

Student and Tuition fees should be reported at gross amounts. Scholarships; tuition waivers; etc. should be shown as expenditures

149
Q

3 Categories of Health Care Organization Revenue

A

Revenue; Other Operating Revenue; Non-operating revenue and support gains and losses

150
Q

Patient Service Revenue

A

accrual basis at established standard rates; even if full amount is not expected to be collected. Net out charity care and record patient service revenue.

151
Q

Other Operating Revenue - Health Care Orgs

A

Tuition from medical schools; cafeteria revenue; gift shop revenue; etc.

152
Q

Nonoperating revenue and support gains and losses - Health Care Orgs

A

unrestricted grants; gifts; etc.; & donated services

153
Q

Donated Supplies to NFP Health Care Orgs

A

Recognized as revenue & assets or reduction of liab depending on how received

154
Q

Voluntary Health and Welfare Orgs

A

obtain most of their operating funds from donations from the general public (Ex: American Red Cross) Can use Cash basis if not materially different from accrual method

155
Q

Voluntary Health and Welfare Orgs - Statement of Functional Expenses

A

Mandatory. Detailed schedule of the expenses divided into functional areas; such as program services and support services.

Financial Accounting and Reporting (2 decks)

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