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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
Proprietary fund accounting is focused on ____ _____.
Income determination
26
The purpose for budgetary accounting is planning and control. TF
True
27
What are the 3 budgetary accounts?
1. Appropriations 2. Estimated Revenues 3. Estimated other financing sources and uses
28
Record a basic balanced budget entry.
dr. Estimated Revenues | cr. Appropriations
29
Record a surplus budget entry.
dr. Est Revs Appropriations cr. Fund Balance
30
At year end, budgetary accounts are reversed and _______.
closed
31
In budgetary accounting, "transfers in from other funds" are considered as estimated revenues. TF
False, estimated other financing
32
In budgetary accounting, "intergovernmental transfers" are considered as estimated revenues. TF
True
33
In budgetary accounting, "licenses and permits" are considered as other financing sources and uses. TF
False, estimated revenues
34
When purchase orders are issued, how are expenditures recorded?
They aren't. An encumbrance account is debited.
35
The budgetary fund balance account represents the difference between estimated revenues and the total of _____ + _____ to the debt service fund.
appropriations, estimated transfers
36
Encumbrances outstanding at the end of the year are reported as..?
Assigned or committed fund balance
37
Encumbrance accounting is only used int the governmental fund accounts. TF
True
38
Deferred outflows and inflows occur in the ______ ____ but relate to ______ ____.
Current year, future periods
39
GASB limits the term deferred to deferred _____ and ___ of resources.
Inflows and outflows
40
What are the 5 types of fund balances?
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
Special revenue accounts cannot report a positive amount of what type of fund balance?
Unassigned
42
Significant outstanding encumbrances should be disclosed in the notes rather than reported in a fund balance. TF
True
43
What are the 3 sections of the CAFR?
1. Introductory 2. Financial 3. Statistical
44
In the CAFR, the minimum financial reporting requirements include a section of ______, basic financial statements, and RSI.
MD and A
45
Deprecation is optional for art collections. TF
True
46
The statment of activities is designed primarily to provide information to asses (fiscal or operational) accountability?
Operational
47
The independent auditors opinion is part of the introductory portion of the CAFR. TF
False, financial portion
48
Elected governing bodies, separate legal entity status, and fiscal independence, are all traits of the.....?
primary government
49
Financial dependence, and financially accountable to the primary government is descriptive of a....?
component unit
50
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
True
51
When the activities of the component unit are very similar to the primary government a ______ presentation is used. If not a _____ presentation is used.
blended, discrete
52
2 factors must be met in order to consider the blended presentation. What are they?
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
Where is discrete component unit information presented?
In the Gov Wide statements only
54
The general fund is always a major fund. TF
True
55
How are non major funds reported?
Aggregated and within a single column on the balance sheet and operating statemtent
56
Fiduciary funds are always major funds. TF
False, they are NEVER major funds
57
What is the 10/5 rule for major fund determination?
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
If the principal must remain intact, what type of gov fund is used?
Permanent, if not, special revenue
59
Proprietary funds use _____ basis accounting and are accounted for like a ________.
Accrual, business
60
Internal service funds are reported in the basic financial statements. TF
False, in the supplemental section
61
"Billings to departments" is a common revenue account for which type of fund?
Proprietary - Internal Service
62
An enterprise fund aims to cover all of its costs while providing goods and services to the general public. Some examples would be...
subway systems, community swimming pools, utilities, airports, toll roads
63
The key distinction between enterprise and internal service funds is....
the primary user of the good or service
64
Enterprise funds are reported in the supplemental section. TF
False, they are reported in the basic financial statements are are subject to the major/non-major fund rules.
65
An enterprise fund is required when...
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
Proprietary funds use expenses or expenditures?
Expenses
67
Proprietary fund statement of cash flows are shown through the direct or indirect method?
Direct
68
A government entity considers cash equivalents as cash if they MATURE within 3 months of the statement date. TF
True
69
What are the two broad types of pension trust funds?
Single and Multiple employer plans
70
Instead of revenues and expenses, fiduciary funds mainly use.....?
Additions and deductions
71
The purpose of an investment trust fund is to account for the portion of the fund that is held for governments ______ than the _______ entity.
other, reporting
72
Agency funds are for assets held briefly and then ____.
Distributed to other parties.
73
Can investments amongst funds be pooled into an investment trust fund?
Yes, but gains and losses but be allocated equitably amongst the funds
74
Government funds view contributions to pension trust funds as _______.
Expenditures
75
Contributions to pension trust funds are viewed as _____.
Revenues additons
76
Agency funds produce a statement of cash flows. TF
False
77
Only outside other government entity and unrealized GL are reported as the balance in the Investment Trust Fund. TF
True
78
Government entities are required to submit statements of cash flows. TF
False
79
Capital projects funds are the only funds that record depreciation? TF
False, internal service funds
80
Grants and subsidies are recorded in the _____ section of the statement of cash flows?
non capital financing

FAR CPA Custom (46 decks)

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