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FAR- Accounting > Governmental > Flashcards

Governmental Flashcards

1
Q

What are the 3 Categories of Funds (GASB)

A

Governmental (GRaSPP)
Proprietary (SE)
Fiduciary (CIPPOE)

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2
Q

Which accounting basis do Governmental Funds use?

A

Modified-Accrual Accounting (MAC GRaSPP)

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3
Q

Which accounting basis do Proprietary Funds use?

A

Accrual Accounting (SCARE)

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4
Q

Which accounting basis do Fiduciary Funds use?

A

Accrual Accounting (SCARE)

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5
Q

What is the primary difference between modified accrual and accrual accounting?

A 
MAC= Current Assets ONLY (no FA or LTD)
SCARE= Includes FA and LTD
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6
Q

Governmental Fund List

A 
GRaSPP
General fund
special Revenue fund
debt Service fund
capital Projects fund
Permanent fund
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7
Q

Proprietary Fund List

A

SE
internal Service fund
Enterprise fund

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8
Q

Fiduciary Fund List

A 
CIPPOE
Custodial fund
Investment fund
Private purpose fund
Pension (and Other Employee benefit) fund
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9
Q

Examples of Derived Non-Exchange Revenues and their Revenue Recognition

A

Sales and Income Taxes (May or May not Happen)

Recognized when received within 60 days of year-end

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10
Q

Examples of Imposed Non-Exchange Revenues and their Revenue Recognition

A

Fines and Property Taxes (Customer must pay)

Recognized when billed

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11
Q

Examples of Government Mandated Non-Exchange Revenues and their Revenue Recognition

A

Grants

Recognized when eligibility is met

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12
Q

Examples of Voluntary Non-Exchange Revenues and their Revenue Recognition

A

Resources are willingly conveyed for a particular purpose

Recognized when restrictions are met

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13
Q

What types of funds are EXCLUDED from the government-wide financial report?

A

Fiduciary (CIPPOE)

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14
Q

What are the Government-Wide financial statements?

A

Statement of Net Position

Statement of Activities

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15
Q

What types of funds are INCLUDED from the government-wide financial report?

A

Governmental: GRaSPP + S (Proprietary)
Business: E (Proprietary)
Component Units

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16
Q

What information precedes the government-wide F/S?

A

Management’s Discussion and Analysis

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17
Q

What is included in the Governmental Fund Balance Sheet?

A

Assets + Deferred Outflows (CURRENT ONLY)
Liabilities + Deferred Inflows (CURRENT ONLY)
FUND BALANCE (GOVERNMENTAL ONLY)

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18
Q

What is included in the Governmental Fund Income Statement?

A

Other financing sources (proceeds from debt and interfund transfers) and other financing uses

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19
Q

What is included in the Proprietary Fund Balance Sheet?

A

Assets + Deferred Outflows
Liabilities + Deferred Inflows
NET POSITION (PROPRIETARY AND FIDUCIARY)

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20
Q

What is included in the Fiduciary Fund Balance Sheet?

A

Assets + Deferred Outflows
Liabilities + Deferred Inflows
NET POSITION (PROPRIETARY AND FIDUCIARY)

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21
Q

Which type of funds must report a Statement of Cash Flows?

A

Proprietary (Internal Service and Enterprise)

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22
Q

What determines a “Major Fund”

A

1) At least 10% of assets + deferred outflows, liabilities + deferred inflows, revenues, or expenditures of ALL Governmental OR ALL Enterprise
2) At least 5% of assets + deferred outflows, liabilities + deferred inflows, revenues, or expenditures of ALL Governmental AND ALL Enterprise combined

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23
Q

Reconciliation to Government-Wide F/S Calculation (Change in Net Position of Gov Activities - IS)

A 
CPAS RIDe or SIT= GRaSPP -> Gov-Wide
\+ Capital outlay
\+ Principal payments (CY)
- Asset disposals (NBV)
- Sources (other financing, debt proceeds)
\+ Revenue (measurable but unavailable)
- Interest expense (Accrued NOT PAID)
- Depreciation expense
\+ internal Service fund net revenue
\+/- eliminate Interfund Transfers
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24
Q

GASB: Stmt of Cash Flows Categories

A

Operating
Noncapital Financing
Capital and Related Financing
Investing Activities

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25
Q

GASB and FASB: Where are interest income and cash receipts reported on the Stmt of Cash Flows?

A

GASB: Investing Activities
FASB: Operating Activities

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26
Q

GASB and FASB: Where are interest expense and cash payments reported on the Stmt of Cash Flows?

A

GASB: Capital/Noncapital Related Financing
FASB: Operating Activities

27
Q

GASB and FASB: Where are capital asset purchases reported on the Stmt of Cash Flows?

A

GASB: Financing
FASB: Investing

28
Q

GASB: Transactions unique to government are reported where on Stmt of Cash Flows?

A

Non-capital financing

29
Q

GASB: Reconciliation of Operating Income to Net Cash on Stmt of Cash Flow

A

Operating

30
Q

GASB: How should infrastructure be accounted for?

A

Capitalized non-current assets unless unable to arrive at cost data. In this case Modified Approach (no capitalization) can be used provided supplementary information is given.

31
Q

GASB: What are the components of Net Position?

A

“RUN” when you “SE” (SE-CIPPOE) Net Position

Net Investment in Capital Assets
Restricted: externally imposed
Unrestricted: else

32
Q

GASB: What are the components of Fund Balance?

A

NU CAR

Nonspendable- inventories
Unassigned
Committed
Assigned
Restricted
33
Q

GASB: Program Revenues List

A

SOC

charges for Services
Operating grants and contributions
Capital grants and contributions

34
Q

GASB: Combining statements of non-major funds to be displayed in “Other Supplementary Information” is ???

A

Optional

35
Q

GASB: Should expenditures for a government unit extending over a period of time be allocated or accounted for in the period of acquisition

A

Both are allowed

36
Q

GASB: Revenue is recognized in the year it is collected plus ??? in the following year.

A

60 days

37
Q

GASB: How do governmental funds report BDE?

A

They don’t, revenue is recognized for the amount deemed collectable, remainder is allowance for uncollectable

38
Q

GASB: Journal Entry for Acquisition of LT Asset (Governmental Fund)

A

DR: Capital Outlay Expenditure
CR: Other Financing Sources

39
Q

GASB: Leases for Governmental, Fiduciary, and Proprietary

A

Lease < 12 months: Short-Term
Ownership Transfer: Lease that Transfers Ownership
Other: Lease Other Than Short Term or Transfers Ownership

40
Q

GASB: What type of funds use the account “Other Financing Sources (Uses)”?

A

GRaSPP ONLY

41
Q

GASB: What is an exchange transaction?

A

Reciprocal transfer in which both parties sacrifice equally

42
Q

GASB: Encumbrances outstanding at year end in the General Fund are reported as ???

A

Committed

43
Q

GASB: Journal Entry for Government funds that have assets associated with unavailable resources

A

DR: A/R
CR: Deferred Inflow of Resources

44
Q

GASB: Amount Available in Fund for Use Equation

A

Appropriations - Encumbrances - Expenditures = Available

45
Q

GASB: If expenditures > amounts given to a fund, how are deficits labeled?

A

Negative Fund Balance - Unassigned

46
Q

GASB: Budgetary control can NEVER be ??? encumbrances

A

Greater than

47
Q

GASB: Budget Inception and Adjustment Journal Entry

A

DR: Expected Revenues
DR: Budgetary Control (Deficit)
CR: Budgetary Control (Surplus)
CR: Appropriations Control

48
Q

GASB: Purchase Order Issuance Journal Entry

A

DR: Encumbrances
CR: Budgetary Control

49
Q

GASB: If purchase order for a government fund is greater than the amount needed to pay, how should this be handled in a journal entry?

A

DR: Budgetary Control (SAME amt as initial)
CR: Encumbrances (SAME amt as initial)
DR: Expenditures (Amt we actually owe)
CR: A/P (Amount we actually owe)

50
Q

GASB: Focus of Government-Wide F/S

A

Operational Accountability

51
Q

GASB: Focus of Fund F/S

A

Fiscal Accountability

52
Q

GASB: Documents Required Reporting for Government-Wide F/S

A

Management’s Discussion and Analysis, Basic F/S, and Required Supplementary Information

53
Q

GASB: What are the traits of special purpose local governments?

A

SELF
Separately Elected
Legally separate
Fiscally independent of other state/local gvt

54
Q

GASB: Should the component unit be reported as Blended or as Discrete?

A

Blended: Substantially the same as primary govt OR serves primary gvt exclusively
Discrete: Anything else [DEFAULT- MOST LIKELY]

55
Q

GASB vs FASB: Construction Period Interest

A

GASB: Not Capitalized (Expenditure GRaSPP, Int Expense SE-CIPPOE)
FASB: Capitalized

56
Q

GASB: Modified Approach Infrastructure

A

Infrastructure expenditures are reported as expenses except outlays that result in additions or improvements, which would be capitalized

57
Q

GASB: Infrastructure Addition Accounting Journal Entry

A

DR: Capital Asset
CR: Capital Outlay Expenditure

58
Q

GASB vs FASB: Are cash and cash equivalents included on the Stmt of Cash Flow?

A

GASB: Yes; DIRECT METHOD is used thus allowing it
FASB: DIRECT yes; INDIRECT NO

59
Q

GASB: Which fund is ALWAYS reported as a major funds?

A

The General Fund

60
Q

GASB: Which fund is NEVER considered in the calculation to find major funds?

A

Internal Service Funds are NOT included

61
Q

GASB: Aggregate Fund Balance/Equity is ??? used to determine the 10% rule for major funds

A

NEVER

62
Q

GASB: Cash receipts from Grants and Subsidies are found in ??? Activities

A

Noncapital Financing

63
Q

Reconciliation to Government-Wide F/S Calculation (Net Position of Gov Activities - BS)

A

CAN
+ non-current Assets purchased in PRIOR years
- Accumulated depreciation of those PRIOR assets
- Non-current liabilities issued in PRIOR years

64
Q

GASB: Exception to the Modified Accrual rule of expenditures (GR: Recognized when incurred because that is when they become measurable)

A

Interest and principal on long-term debt are recorded when they become due and payable, not when they accrue.

FAR- Accounting (6 decks)

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