Goverment and NFP

Question 1

What are the 3 types of funds in Govt accounting?

Answer 1

Govt
Business
Fiduciary

Question 2

How does one account for leases on gov?

Answer 2

General capital assets that are acquired by lease are recorded in the same manner as outright purchase.
The asset is reported only in the governmental activities column of the government-wide statement of net position. In the general fund, when a lease represents the acquisition of a general capital asset, the transaction is reported by debiting an expenditure and crediting an other financing sources – lease liability at the present value of the expected payments ($75,000 annual principal repayment × 3 years = $225,000).

Interest is not part of this entry

Question 3

What is a full set of REQUIRED statements for an NFP entity?

Answer 3

A complete set of financial statements of an NFP must include:
1) a statement of financial position (B/S),
2) a statement of activities and a statement of cash flows, and
3) accompanying notes to financial statements.
Activities should provide information about expenses reported by functional classification, e.g., by major classes of program services and supporting activities. An analysis also must be presented that disaggregates functional expense classifications by natural expense classifications (e.g., salaries, interest, rent, and depreciation).

Question 4

What are the minimum classes of net assets for NFPs?

Answer 4

WIth and w/o donor restrictions

Question 5

What are the NFP Financial Statements?

Answer 5

NFP’s general-purpose financial statements are:
1 - statement of financial position (B/S),
2 - statement of activities, and
3 - the statement of cash flows.