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FAR CPA Custom > Government Accounting > Flashcards

Government Accounting Flashcards

1
Q

Concept statements form GASB are NOT authoritative guidance. TF

A

True

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2
Q

What are the 5 GASB concept statements?

A
  1. Objectives of financial reporting
  2. Services efforts and accomplishments
  3. Financial Reporting
  4. Elements of financial reports
  5. Service efforts and accomplishments (amended)
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3
Q

Accountability and ______ _____ are the two major objectives of financial reporting.

A

Inter-period equity, also not that inter-period equity is a basic component of accountability in general

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4
Q

What are the characteristics of financial reporting for governments?

A

TRUCCR

Timeliness, relevance, understandability, comparability, consistency, and reliability.

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5
Q

All service efforts and accomplishment information given should meet _____.

A

The characteristics for financial reporting guidelines (TRUCCR).

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6
Q

“Other supplemental information” is not required for governments to report. TF

A

True

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7
Q

What are the 5 elements of government Statements of Financial Position (balance sheet)?

A
  1. Assets
  2. Liabilities
  3. Deferred Outflow of Resources
  4. Deferred Inflow of Resources
  5. Net position
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8
Q

____ measures indicate the accomplishments that occur because of the services provided.

A

Outcome

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9
Q

Budgets are required to be prepared on the GAAP basis. TF

A

False

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10
Q

What are the 3 types of government funds?

A
  1. Government funds
  2. Enterprise funds
  3. Fiduciary funds
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11
Q

The 5 funds types within government funds are?

A
  1. General
  2. Special Revenue
  3. Debt Service
  4. Capital Projects
  5. Permanent

(consonants in DRIP CEG)

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12
Q

The two types of proprietary funds are?

A
  1. Enterprise
  2. Internal Service

(vowels in DRIP CEG)

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13
Q

The 4 types of fiduciary funds are?

A
  1. Pension Trust
  2. Investment Trust
  3. Private Purpose Trust
  4. Agency Trust

(PIPPA)

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14
Q

A major characteristic of an enterprise fund are _____ to users.

A

Charges

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15
Q

Flow of ______ ______ financial resources and flow of _____ resources are the two types of measurement focuses in government accounting.

A

CURRENT expendable (modified accrual), economic (accrual)

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16
Q

The two bases of accounting are:

A

Accrual and modified accrual

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17
Q

Modified accrual basis generally deals with _____ assets and liabilities.

A

Current

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18
Q

Modified accrual accounting is ONLY used in the government fund accounts. TF

A

True (the consonants in DRIP CEG)

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19
Q

Under modified accrual revenues are recognized when they become _____ and ______.

A

Measurable and available

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20
Q

“Legally available” means collectable within __ days after year end.

A

60

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21
Q

Under the modified accrual basis, when revenues are measurable but not legally available they are classified as ____ _____.

A

deferred inflows

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22
Q

Under modified accrual, expenditures are recognized when they are ____.

A

Incurred

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23
Q

“Expenditures” are unique to funds using the ____ basis of accounting.

A

Modified accrual

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24
Q

Repayment of principal on LT debt, payments to vendors, and equipment purchases are all considered expenditures. TF

A

True

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25
Q

Proprietary fund accounting is focused on ____ _____.

A

Income determination

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26
Q

The purpose for budgetary accounting is planning and control. TF

A

True

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27
Q

What are the 3 budgetary accounts?

A
  1. Appropriations
  2. Estimated Revenues
  3. Estimated other financing sources and uses
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28
Q

Record a basic balanced budget entry.

A

dr. Estimated Revenues

cr. Appropriations

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29
Q

Record a surplus budget entry.

A

dr. Est Revs
Appropriations
cr. Fund Balance

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30
Q

At year end, budgetary accounts are reversed and _______.

A

closed

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31
Q

In budgetary accounting, “transfers in from other funds” are considered as estimated revenues. TF

A

False, estimated other financing

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32
Q

In budgetary accounting, “intergovernmental transfers” are considered as estimated revenues. TF

A

True

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33
Q

In budgetary accounting, “licenses and permits” are considered as other financing sources and uses. TF

A

False, estimated revenues

34
Q

When purchase orders are issued, how are expenditures recorded?

A

They aren’t. An encumbrance account is debited.

35
Q

The budgetary fund balance account represents the difference between estimated revenues and the total of _____ + _____ to the debt service fund.

A

appropriations, estimated transfers

36
Q

Encumbrances outstanding at the end of the year are reported as..?

A

Assigned or committed fund balance

37
Q

Encumbrance accounting is only used int the governmental fund accounts. TF

A

True

38
Q

Deferred outflows and inflows occur in the ______ ____ but relate to ______ ____.

A

Current year, future periods

39
Q

GASB limits the term deferred to deferred _____ and ___ of resources.

A

Inflows and outflows

40
Q

What are the 5 types of fund balances?

A

NU-CAR

  1. Non spendable (inventory, equip, etc)
  2. Unassigned
  3. Committed (specific purpose, formal action, highest level)
  4. Assigned (specific purpose, intent)
  5. Restricted (creditors, laws, grantors)
41
Q

Special revenue accounts cannot report a positive amount of what type of fund balance?

A

Unassigned

42
Q

Significant outstanding encumbrances should be disclosed in the notes rather than reported in a fund balance. TF

A

True

43
Q

What are the 3 sections of the CAFR?

A
  1. Introductory
  2. Financial
  3. Statistical
44
Q

In the CAFR, the minimum financial reporting requirements include a section of ______, basic financial statements, and RSI.

A

MD and A

45
Q

Deprecation is optional for art collections. TF

A

True

46
Q

The statment of activities is designed primarily to provide information to asses (fiscal or operational) accountability?

A

Operational

47
Q

The independent auditors opinion is part of the introductory portion of the CAFR. TF

A

False, financial portion

48
Q

Elected governing bodies, separate legal entity status, and fiscal independence, are all traits of the…..?

A

primary government

49
Q

Financial dependence, and financially accountable to the primary government is descriptive of a….?

A

component unit

50
Q

If the primary government appoints a voting majority of the units governing bodies and has the ability to impose its will and influence its finances, the unit is a component unit. TF

A

True

51
Q

When the activities of the component unit are very similar to the primary government a ______ presentation is used. If not a _____ presentation is used.

A

blended, discrete

52
Q

2 factors must be met in order to consider the blended presentation. What are they?

A

1, The component entity must be dependent (influence on elected board)
2. The component entity must be fiscally dependent (budgeting approval by higher)

*Both have to be met

53
Q

Where is discrete component unit information presented?

A

In the Gov Wide statements only

54
Q

The general fund is always a major fund. TF

A

True

55
Q

How are non major funds reported?

A

Aggregated and within a single column on the balance sheet and operating statemtent

56
Q

Fiduciary funds are always major funds. TF

A

False, they are NEVER major funds

57
Q

What is the 10/5 rule for major fund determination?

A

10% of the total assets or liabilities for its fund category, and 5% of the corresponding total for all gov an enterprise funds combined.

58
Q

If the principal must remain intact, what type of gov fund is used?

A

Permanent, if not, special revenue

59
Q

Proprietary funds use _____ basis accounting and are accounted for like a ________.

A

Accrual, business

60
Q

Internal service funds are reported in the basic financial statements. TF

A

False, in the supplemental section

61
Q

“Billings to departments” is a common revenue account for which type of fund?

A

Proprietary - Internal Service

62
Q

An enterprise fund aims to cover all of its costs while providing goods and services to the general public. Some examples would be…

A

subway systems, community swimming pools, utilities, airports, toll roads

63
Q

The key distinction between enterprise and internal service funds is….

A

the primary user of the good or service

64
Q

Enterprise funds are reported in the supplemental section. TF

A

False, they are reported in the basic financial statements are are subject to the major/non-major fund rules.

65
Q

An enterprise fund is required when…

A
  1. Activity is financed by debt securely SOLELY by a pledge of the net revs of the activity
  2. Laws and regs require that the costs to provide the services be provided by fees and charges
  3. Pricing policies are designed to generate revs to cover its costs
66
Q

Proprietary funds use expenses or expenditures?

A

Expenses

67
Q

Proprietary fund statement of cash flows are shown through the direct or indirect method?

A

Direct

68
Q

A government entity considers cash equivalents as cash if they MATURE within 3 months of the statement date. TF

A

True

69
Q

What are the two broad types of pension trust funds?

A

Single and Multiple employer plans

70
Q

Instead of revenues and expenses, fiduciary funds mainly use…..?

A

Additions and deductions

71
Q

The purpose of an investment trust fund is to account for the portion of the fund that is held for governments ______ than the _______ entity.

A

other, reporting

72
Q

Agency funds are for assets held briefly and then ____.

A

Distributed to other parties.

73
Q

Can investments amongst funds be pooled into an investment trust fund?

A

Yes, but gains and losses but be allocated equitably amongst the funds

74
Q

Government funds view contributions to pension trust funds as _______.

A

Expenditures

75
Q

Contributions to pension trust funds are viewed as _____.

A

Revenues additons

76
Q

Agency funds produce a statement of cash flows. TF

A

False

77
Q

Only outside other government entity and unrealized GL are reported as the balance in the Investment Trust Fund. TF

A

True

78
Q

Government entities are required to submit statements of cash flows. TF

A

False

79
Q

Capital projects funds are the only funds that record depreciation? TF

A

False, internal service funds

80
Q

Grants and subsidies are recorded in the _____ section of the statement of cash flows?

A

non capital financing

FAR CPA Custom (46 decks)

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