Governmental Accounting Part B

Question 1

What are the 2 important types of accountability that the government focuses on?

Answer 1

Operational and fiscal

Question 2

What does operational accountability focus on?

Answer 2

Government-wide financial statements

Question 3

What does fiscal accountability focus on?

Answer 3

Fund financial statements

Question 4

What does the integrated approach require?

Answer 4

Reconciliation of the fund financial statements to the government-wide financial sstatements to link the accountability objectives

Question 5

What are the required pieces for reporting for general purpose governmental units?

Answer 5

MD&A, Government-wide financial statements, fund financial statements, Notes to the financial statements, Required Supplementary Information, Othere Supplementary Information(optional)

Question 6

What is considered the Basic Financial Statements?

Answer 6

Government-wide financial statements, fund financial statements, and notes to the financial statements

Question 7

What is a component unit?

Answer 7

An organization for which the elected officials of the primary government are financially accountable.

Question 8

What are examples of transactions of not-for-profit entities reported as a component unit?

Answer 8

Private foundations associated with state universities and public health care facilities

Question 9

What should be included in the MD&A?

Answer 9

Description of the Financial Statements, Identity of the Primary Government and Discrete Component Unites, Economic Conditions and Outlook, and Major Initiatives

Question 10

Is a variance analysis and reconciliation of fund financial statements to government-wide financial statements included in the MD&A?

Answer 10

No

Question 11

What does GASB 34 require the use of for government-wide financial statements?

Answer 11

Economic resources measurement focus and the full accrual basis of accounting

Question 12

Are fiduciary funds included in the government-wide financial statements?

Answer 12

No

Question 13

What are the 3 componenets of Net Position?

Answer 13

Net Investment in Capital Assets, Restricted, and Unrestricted

Question 14

Governments may use the modified approach if?

Answer 14

The Government’s Asset Management System meets certain conditions and the government documentation should include datat on asset preservation

Question 15

The net expense or revenue for each function or program is classified into one of these categories?

Answer 15

Primary government governmental activities, primary government business-type activities, and component units

Question 16

How are expenses reported in the Statement of Activities in the Government-wide financial statements?

Answer 16

By function on the full accrual basis

Question 17

What are the program revenue category types?

Answer 17

Charges for Services, Operating Grants and Contributions, and Capital Grants and Contributions

Question 18

What is the rule for a fund to be considered a major fund?

Answer 18

10% test within its category and 5% test for all categories

Question 19

What is the mneumonic for the reconciliation of the balance sheet?

Answer 19

GALS BARE

Question 20

What does the reconciliation of the balance sheet consist of?

Answer 20

Governmental fund balance + Assets - Liabilities + Internal service net position then adjustments for Basis of Accounting, Accrued, Revenues, and expenses

Question 21

What is the mneumonic for the reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance?

Answer 21

GOES BARE

Question 22

What does the reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance consist of?

Answer 22

Governmental fund balance - Other financing sources + Expenditures + Internal service fund net income then adjustments for Basis of Acounting, Accrued, Revenues, and expenses

Question 23

What are the 7 differences of the proprietary funds cash flow statements and the commercial enterprise version?

Answer 23

Direct method is required, a reconciliation of operating income to net cash provided by operations is required, four categories(Operating, capital and noncapital financing activities, and investing activities), the order of financing and investing activities categories are reversed, interest income/cash receipts are reported as “investing activities”, interest expense/cash payments are either capital or noncapital, and capital purchases are reported as “financing activities”

Question 24

What should generic governmental disclosures include?

Answer 24

A description of government-wide activities, noting the exclusion of fiduciary funds, policies relating to elimination of internal activity, and description of the modified approach for reporting infrastructure, if used

Question 25

What is an example of a specific governmental disclosure(GASB 38)?

Answer 25

The length of time used to define “available” in determing revenue recognition under the modified accrual basis

Question 26

Significant information that follows the basic financial statements includes?

Answer 26

Budgetary information, infrastructure information, and pension information

Question 27

What information should be presented regarding pension information?

Answer 27

Sources of changes, information about the components, significant methods and assumptions, annuall money-weighted rate of return, and explanation of trends

Question 28

What is included in the Other Supplementary information?

Answer 28

Combining statements for nonmajor funds

Question 29

The accounting associated with interfund activity can be classified as follows?

Answer 29

Reciprocal and non-reciprocal interfund activity

Question 30

What does reciprocal interfund activity include?

Answer 30

Interfund loans and interfund services provided and used

Question 31

What does non-reciprocal interfund activity include?

Answer 31

Interfund transfers and interfund reimbursements

Question 32

Should interfund transaction between the primary government and its fiduciary funds be reported?

Answer 32

Yes