Brainscape's Knowledge GenomeTM

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


See full index

CPA- FAR > Governmental Accounting > Flashcards

Governmental Accounting Flashcards

1
Q

What are the three major types of funds in governmental accounting?

A

Governmental, Proprietary, Fiduciary

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

Which two accounting bases are used in governmental accounting?

A

Accrual basis - current economic resources focus (revenues recognized when earned)

Modified accrual basis - current financial resources focus (revenues recognized when available and measurable)

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

What is a budget appropriation?

A

The highest amount allowed for a particular expenditure under a budget.

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

What is an encumbrance?

A

Records purchase and reserves it for the encumbrance.

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

What is the opening budgetary entry?

A

Dr Estimated Revenues Control
Cr Appropriations Control
Dr/Cr Budgetary Fund Balance (plug)

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

What is the closing budgetary entry?

A

Dr Appropriations Control
Dr/Cr Budgetary Fund Balance (plug)
Cr Estimated Revenues Control

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

What are the types of governmental funds?

A

General Fund
Special Revenue Fund
Permanent Fund
Capital Projects Fund
Debt Service Fund

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

What is a General Fund?

A

The operating fund of the governmental unit

Records Significant Revenues: Taxes; Tickets; Fines; Licenses

Records Significant Expenditures: Police; Education; Fire Dept

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

What is a Special Revenue Fund?

A

Restricted for a specific purpose such as street repair.

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

What is a Permanent Fund?

A

Legally restricted fund; where only earnings can be used to fund programs.

Principal remains intact.

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

What is a Capital Projects Fund?

A

Used to acquire and build facilities.

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

What is a Debt Service Fund?

A

Handles repayment of long-term debt and related interest.

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

Which fund statements are issued in Governmental Accounting?

A

Balance Sheet

Statement of Revenues; Expenditures; and Changes in Fund Balance

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

When is Revenue recorded in Governmental Accounting?

A

When it is BOTH available and measurable; regardless of when it is spent.

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

What is Derived Tax Revenue?

A

Money collected from people doing things:

Sales tax (buying cars) or income tax (people working)

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

What is Imposed Tax Revenue?

A

Tax assessed just because things exist

Example: property tax on a car (even if it’s never driven); real estate tax

Recorded as a revenue when BUDGETED.

Estimated uncollectible property tax revenues don’t offset revenues; so don’t net them.

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

What are the types of Proprietary Funds?

A

Internal Service Funds - to serve the needs of other governmental units (i.e. motor pool)

Enterprise Funds - provide goods or services to external users (i.e. post office)

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

What are the Fund Balance Types?

A

Restricted - Restricted by Contributor
Committed - Restricted by Government
Assigned - Intended for a purpose
Unassigned - Available to be spent
Non-spendable - Not in a spendable state

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

What are the types of Fiduciary Funds?

A

Agency Fund - government acts as an agent or custodian

Pension Trust Fund - Government is a trustee for a pension plan

Investment Trust Fund - Government is a trustee over a series of investments

Private Purpose Trust - Trust that benefits various individuals and entities

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

How are Assets & Liabilities presented on the Statement of Net Position?

A

Assets (Current & Non-Current)
Deferred Outflows of Resources
Liabilities (Current & Non-Current)
Deferred Inflows of Resources

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

How are Capital Assets shown on a governmental Statement of Net Position?

A

They are shown net of debt

Asset Cost - Accumulated Depreciation - Asset Liabilities : Net Assets

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

How is infrastructure reported on a governmental Statement of Net Position?

A

Modified approach:

Reported at cost; no accumulated depreciation

23
Q

How is a Statement of Net Position divided?

A

Into Governmental Activities and Business Activities

24
Q

How are activities presented in a Statement of Activities?

A

They are divided by function

If the activities of a component are distinguishable from the rest of the governmental entity; then discreet presentation is required

If the activities of the component cannot be identified and separated from the rest of the governmental activities; then blended presentation is warranted.

Component units are reported in the Entity-Wide Financial Statements and not the Fund Financial Statements.

25
Q

What is the primary objective of governmental accounting?

A

To provide information that is useful and benefits a wide range of users including:

Costs of services provided

Sufficiency of revenues to cover costs

Financial position of entity

26
Q

What Financial Statements are required for Defined Benefit Pension plans?

A

Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position

27
Q

What are the components of the Statement of Fiduciary Net Position for Defined Benefit Pension Plans?

A

Assets; Deferred Outfows; Liabilities; Deferred Inflows; Fiduciary Net Position

28
Q

What are the components of the Statement of Changes in Fiduciary Net Position for Defined Benefit Pension plans?

A

Additions (Contributions and Net Investment Income) - Deductions (Benefits Payments and Admin Expense) : Net Change in Fiduciary Net Position

29
Q

What should be included in the Financial Statement notes for Defined Benefit Pension Plans?

A

Types of Benefits; Plan Member Classes; Board Information; Investment Policies and FV Determination

30
Q

cash flows from noncapital financing activities include

A
  • proceeds or payments related to borrowing not attributable to acquisition, construction, or improvements of capital assets
  • cash receipts or payments related to grants or subsidiaries not attributable to capital purposes
  • property taxes (not capital)
  • cash paid to other funds (other than interfund services)
31
Q

letter of transmittal should be included::

A

in the introductory section of local government’s comprehensive annual financial report

32
Q

JE: general obligation bonds issued at par

A

DR: cash
CR: other financing sources

33
Q

JE: appoved purchase orders issued for supplies

A

DR: encumbrance control
CR: budgetary control

34
Q

JE: ordered supplies were received and invoices approved

A 
DR: budgetary control
CR: encumbrance control
(reversal)
DR: Expenditures control 
CR: Vouchers payable
35
Q

JE: general fund salaries and wages were incurred

A

DR: expenditures control
CR: vouchers payable

36
Q

JE: Internal service fund had interfund billings

A

DR: Due from other funds
CR: interfund revenues

37
Q

JE: revenues were earned from previously awarded grant

A

DR: deferred inflows of resources
CR: grant revenues

38
Q

JE: property taxes collected in advance

A

DR: cash
CR: Deferred inflows of resources

39
Q

JE: appropriations recorded on adoption of budget

A

DR: estimated revenues
CR: appropriations control

40
Q

JE: Short term financing received form a bank secured by city’s taxing power

A

DR: cash
CR: Tax anticipation notes payable

41
Q

JE: Excess of estimated inflows over estimated outflows

A

DR: Estimated revenues
CR: appropriations
CR: budgetary control

42
Q

pension fund balance sheet reported:

A

fiduciary fund financial statements

43
Q

road and bridge assets reported using modified approach reported:

A

required supplementary information

44
Q

non-major debt service fund reported:

A

consolidated with governmental activities in the government wide financial statements

45
Q

internal service fund financial statements

A

consolidated with governmental activities in the government wide financial statements

46
Q

special assesment activity for which the local government has no responsibility reported:

A

agency funds

47
Q

comparison of general fund budgets to actual general fund activity reported:

A

required supplementary information

48
Q

budget variances reported:

A

optional supplementary information

49
Q

analysis of significant budget variances reported

A

MD&a

50
Q

details of non-major fund financial statements reported:

A

optional supplementary information

51
Q

definition of “Measurable and available” reported:

A

required footnote disclosure

52
Q

to reconcile the change in fund balance of governmental funds to the change in net position of governmental activities on gov’t wide F/S

A

GOES BARE

Add Governmental changes in fund balances
Subtract Other financing sources 
Add Expenditures (capital outlay, debt service principal)
Add/Subtract internal Service fund change in net position activity.

Add Additionall accrued revenue
subtract additional accrued expenses

53
Q

major fund treatment for purposes of fund financial statement presentation

A

requires a fund to be 10% of its fund category’s assets, revenues, or expenditures, AND 5% of combined governmental and enterprise assets, revenues, and expenditures/expenses

54
Q

reciprocal interfund activity includes

A

interfund loans and interfund services

CPA- FAR (19 decks)

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