governmental/NFP Flashcards
an enterprise fund received interest of $10,000 on long term investments. how should this be reported on the statement of cash flows?
investing
which fund reports transfers as “other financing uses?”
general fund
how does the enterprise fund report transfers to general fund?
non-operating expense
journal entry for receiving proceeds from issuing bonds:
cash
(other financing sources)
when the municipality pays $300,000 in principal and $80,000 in interest on its general long term debt, the journal entry recorded in the governmental funds:
expenditure - principal $300,000
expenditure - interest $80,000
(cash) $380,000
how are bond proceeds recorded as?
credit other financing sources
how are bond principal payments recorded as?
debit to expenditures
what are the 2 criterion for component units?
Financial accountability
Fiscal accountability
What makes a component financially accountable to the primary government?
- the primary govt appoints a board of trustees for the component unit
- the primary govt can receive financial benefits/burdens from the component unit
What are 3 examples of how a component unit is fiscally accountable to a primary govt?
The primary govt can:
- levy taxes
- set charges (like tuition)
- guarantee debt
What are the objectives in:
fund accounting
govt wide financials
- fiscal
- operational
what is the difference between a regular endowment and a term endowment?
principal can not be used in a regular endowment.
principal can be used after a specified event in a term endowment
what is the difference between a quasi endowment and board designated net assets?
principal can NOT be spent in a quasi endowment.
principal can be spent in a board designated net asset
which endowments can be “undone” by the board?
quasi-endowment
board designated net assets
what section of the statement of financial position are underwater endowments disclosed?
net assets with donor restriction
