Governmental Accounting Questions Flashcards
When an Enterprise fund submits a bill to the General fund what is the result?
Revenue by the Enterprise fund
Expenditure by the General Fund
What constitutes Revenue in the Debt Service Fund?
Interest Revenue from Investments
What does program revenue include?
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
On the Government Wide Statement of Net Position - Net position is reported in the following categories?
Restricted & Unrestricted
The debt service transactions of a special assessment issue for which the government is not obligated in any manner should be reported in
Agency Fund
Fixed assets are reported in?
Governmental activities section of the Government Wide Statement of Net Position Financial Statements
What should be accrued as revenues by the General Fund of a local government, when using modified accrual accounting?
Sales Tax or other firm commitments held by the State for Grants.
What are the 5 categories of RSI
Management’s Discussion and Analysis;
Schedule of Funding Progress and Schedule of Employer Contributions (these schedules relate to pension disclosures);
Budgetary Comparison Schedules (this disclosure is for governmental funds)
Information about Infrastructure Assets Reported Using the Modified Approach; and
Certain information about Risk Financing Activities.
What are the types of Non Exchange Transactions?
Imposed
Derived
Voluntary
Government Mandated
What does Voluntary Exchanges consist of?
include grants and entitlements from one government to another where the providing government does not mandate the program covered by the grant. Voluntary
Voluntary contributions from individuals and other nongovernmental entities.
Proceeds of Long Term Debt should be recorded as?
Bond Issue Proceeds - Other Financing Source
Premiums received on general obligation bonds are generally transferred to what fund?
Debt Service
In addition to governmental activities, what other activities may be reported on the government-wide Statement of Net Position?
business-type activities and discretely presented component units
received goods that had been approved for purchase but for which payment had not yet been made. Whats the journal entry?
DR Expenditures Control xx
CR Accounts Payable (cash) xx
DR Reserved for Encumbrances xx
CR Encumbrances Control xx
Generally Government must Capitalize donations and depreciate them. In what Case do they not have to?
If the Donation will be part of the collection and if sold the proceeds will be used to purchase other collections
The accounting for special revenue funds is most similar to?
General Fund
If a state or local government files for bankruptcy under Chapter 9 of the US Bankruptcy Code, accounts payable should be
remeasured based on the Plan of Adjustment
According to GASB Concepts Statements which of the following is an essential characteristic of a liability?
A liability is a present obligation to sacrifice resources that the government has little or no discretion to avoid
In what situation will the fund balance—unreserved of a governmental unit increase at the end of the fiscal year, when closing entries are prepared?
If no Outstanding Encumbrances at year end?
When Revenues are more than Expenditures and Encumbrances
In the case of No outstanding encumbrances - Appropriations exceed Actual Expenditures
grants and subsidies to decrease operating deficits should be classified on the statement of cash flows as?
Non Capital Financing Activities
An Enterprise fund has Prepaid Insurance, Depreciation and Provision for doubtful accounts? Which financial Statements should each of these be included?
Prepaid = Statement of Net Position as deferred
Depreciation and Provision = Statement of Revenues, Expenses and changes in Net Position
A state government enters into an agreement in which a private company agrees to build a toll road for the state in exchange for the tolls to be collected for the next 30 years. The toll road has a fair value of $500 million at the time it is put in service. Which of the following is correct about the accounting for this arrangement?
The state government should record the toll road at its fair value and deferred revenue for the same amount
What are the GASB Concept Statements intended to establish?
Fundamentals on which governmental accounting and reporting standards will be based
What is the major difference between an exchange transaction and a nonexchange transaction for governmental units?
The relationship between the amount of value given and received
In an exchange transaction goods or services of equal or near equal value exchanged. In a nonexchange transaction one party provides value for no direct benefit.
Other than Appropriations and Encumbrances what other account gets closed out at the end of the year?
Expenditures because it’s a temporary account.
Balance sheet accounts include Cash Investments, Payables, Fund Balances and Fund Balances Reserved for Encumbrances which are not closed out.
On the government-wide Statement of Net Position internal service fund activities are normally reported in?
governmental activities section on the government-wide Statement of Net Assets.
What is included in the elements of service efforts and accomplishments (SEA) reporting?
Measures of service effort
Measures of service accomplishments
Measures that relate service efforts to service accomplishments
The criteria for identifying a legally separate organization as a component unit of a primary government is?
primary government can impose its will on the unit
or the unit is financially dependent on the primary government and There is a potential for the unit to provide specific benefits to, or burdens on, the primary government
What is an example of an expenditure of a governmental unit’s general fund?
Routine employer contributions from the general fund to a pension trust fund
The capital projects fund received $2000 to build a hotel. 1500 was Proceeds from a General Obligation bond and 500 was transferred from General Fund. How should this be reported on the Financial Statements?
1500 and 500 = Other Financing Source
2000 = Expenditure
The Highwood School District participates in a cost-sharing defined benefit plan. What is the amount of expense and liability that it should record?
The expense is equal to the employers proportionate share
What would be included in the Budgetary Comparison Schedule in the comprehensive annual financial report (CAFR) of a governmental unit?
general and major special revenue fund types for which annual budgets have been legally adopted
