Governmental Units Flashcards
The Comprehensive Annual Financial Report (CAFR) of a state or local governmental unit should include fund-level statements for which fund categories?
All three, governmental, proprietary and fiduciary
Define jointly governed organizations
Jointly governed organizations are subject to the joint control or two or more participating governments, but there is neither an ongoing financial interest nor an ongoing financial responsibility.
An entity is a component unit of another entity if
It is fiscally dependent on the other entity and a benefit or burden relationship exists with the other entity.
According to GASB 52, real estate held as an investment by a government endowment should be reported at
A. Fair value
B. Historical cost
C. Historical cost less accumulated depreciation
D. A nominal value
Fair value
In accordance with GASB 33,Accounting and Financial Reporting for Nonexchange Transactions, personal income taxes are an example of what type of nonexchange transaction?
Derived
Which of the following has the highest level of authority for setting GAAP for nongovernmental not-for profit organizations
FASB, GASB is only for governmental agencies
Which of the following is not one of the significant Financial reporting implications?
A. Expression of public policy
B. To demonstrate that the budget is prepared on the GAAP basis
C. Expression of Financial intent
D. Is a form of control
To demonstrate that the budget is prepared on the GAAP basis
Which of the following funds is used to report the activities of a public landfill charging customers?
Enterprise
Permanent
Special revenue
Internal service
Enterprise
The encumbrances control account of a county is decreased when A. Goods are ordered or B. When Goods are received?
When Goods are received
A liability is recorded in governmental funds when:
A. Invoices are paid
B. The budget is amended
C. Goods or services are ordered
D. Goods and Services are received and the invoice is vouchered.
D. When goods and services are received, expenditures are recorded and a liability, vouchers payable, is recorded.
Encumbrances outstanding at year’s end in a state’s general fund may be reported as what?
A Fund Balance assigned in the general fund.
What are Are general fund transfers to the debt service fund for providing servicing a debt that is regular, routine or reoocurring?
Operating transfer
Would buildings likely be considered infrastructure assets of a local government and why?
No, Infrastructure assets are capital assets that are normally stationary and can be preserved for a longer time than most capital assets such as bridges, sewer systems, lighting systems and drainage
Where should the liability for the general obligation bonds be recorded?
government-wide financial statements
When the budget for the General Fund is recorded, the required journal entry will include which of the following:
A. A Credit to appropriations
B. A Credit to estimated revenues
C. A debit to encumbrances
D. A credit to fund balance
a credit to appropriations
If a state law requires that local governments prepare general fund and special revenue fund budgets on a basis that differs from the basis of accounting required by GAAP. which of the following should happen:
A. The actual amounts in the budgetary comparison schedule should be reported on the GAAP basis.
B. The actual amounts in the budgetary comparison schedule should be reported on the GAAP basis; a separate budget-basis comparison schedule should be prepared for the appropriate state oversight body.
C. The actual amounts in the budgetary comparison schedule should be reported using the government’s budgetary basis.
D. Only a separate budget-basis comparison schedule should be prepared for the appropriate state oversight body.
C. The actual amounts in the budgetary comparison schedule should be reported using the government’s budgetary basis.
For what funds do budgetary comparisons need to be presented in connection with the basic financial statemetns?
General fund and major special revenue funds for which budget is legally adopted
What is the characteristic arising from interfund transfers out?
distinguishes “Other Financing Uses” from expenditures.
Assuming no outstanding encumbrances at year’s end, closing entries for which of the following situations would increase the unassigned fund balance at year’s end?
A. Estimated revenues exceed actual appropriations
B. Actual revenues were less than estimated revenues
c. Actual expenditures exceed appropriations
d appropriations exceed actual expenditures
Appropriations exceed actual expenditures
Are Transfers in from other funds considered revenues
No, they are considered “Other financing sources”
Which of the following revenues results from taxes and other assessments imposed by governments that are not derived from underlying transactions?
A.income taxes
B. Sales taxes
C. Fines and forfeits
Fines and forfeits
Which is a government fund that uses the current Financial resources measurement focus?
Special revenue, internal service, or enterprise fund?
Special revenue
Which of the following accounts should be closed at the end of the year?
Expenditures, vouchers payable, or fund balance assigned?
Expenditures
