M5 - Fund Financial Statements

Question 1

Fiduciary funds must present their statement of financial position in a net position format. (true or false)

Answer 1

True

Assets
Deferred outlfows
———————————————-
minus Resources OWED by the entity
———————————————-
Liabilities
Deferred inflows
——————————————-
Net position

Question 2

Governmental funds must present their statement of financial position in a balance sheet rather than net position format. (true or false)

Answer 2

True

Assets
Deferred Outflows
--------------------------------
Equal to
--------------------------------
Liabilities
Deferred Inflows of resources
\+ fund balance

Question 3

The categories of cash flow for a government entity:

Answer 3

Cash flows from operating activities
Cash flows from investing activities
Cash flows from non-capital financing activities
- include borrowing money for other than capital expenditures, such as tax anticipation notes
Cash flows from capital and related financing activities
- include acquiring and disposing of capital assets and any related debt.

Question 4

Cash receipts associated with interest income are reported as investing activities for purposes of enterprise fund Statement of Cash Flow reporting. (true or false)

Answer 4

True

Although cash receipts associated with interest income are frequently classified as operating activities for purposes of commercial Statement of Cash Flow reporting, enterprise funds report these cash flows as investing activities.

Question 5

Non-capital financing activities anticipate the cash flows associated with borrowing and lending related to sustaining operations. (true or false)

Answer 5

true

Question 6

The criteria for determining major funds include qualification as to what?

Answer 6

Revenues, expenditures/Expenses, Assets, or Liabilities that are at least 10% of the associated total for ALL governmental OR enterprise (as appropriate) AND at least 5% of the total of the associated totals for ALL governmental AND enterprise funds.

Question 7

Cash equivalents include highly liquid items that mature within 3 months of acquisition. (true or false)

Answer 7

true

Question 8

Cash flows from noncapital financing activities include:

Answer 8

• Proceeds or payments related to borrowing not attributable to the acquisition, construction or improvement of capital assets.
• Cash receipts or payments related to grants or subsidies not attributable to capital purposes.
• Property taxes not designated for capital purposes.
• Cash paid to other funds (other than for interfund services)

Question 9

Investing activities include making and collecting loans and acquiring and disposing of debt or equity instruments including interest and dividend income. (true or false)

Answer 9

True

Question 10

Capital and related financing activities include acquiring and disposing of capital assets, borrowing money for capital acquisitions and repaying amounts borrowed (including interest) as well as capital grants, special assessments levied for capital acquisitions, etc. (true or false)

Answer 10

True

Question 11

Operating activities generally result from providing services and producing or delivering goods and all other transactions not defined by other classifications. Payment for services to other funds, including payments in lieu of taxes, are treated as operating. (true or false)

Answer 11

True

Question 12

Non capital financing activities include borrowing for non capital purposes as well as cash receipts from grants or subsidies, property taxes, internal transfers, etc. (true or false)

Answer 12

true