MDS F6 Flashcards
What is the governmental unit journal entry for encumbrances of purchase orders - when the order is placed?
Encumbrances
Fund balance reserved for Encumbrances
What is the governmental unit journal entry for encumbrances of purchase orders - when the order is received?
Fund Balance Reserved for Encumbrances
Encumbrances
What is the governmental unit journal entry for recording a budget at the beginning of the year?
Estimated Revenues
Appropriations
Budgetary Fund Balance (plug)
What is the governmental unit journal entry for recording the budget at the end of the year?
Budgetary Fund Balance (Plug)
Appropriations
Estimated Revenues
Expenditure
Vouchers PayableWhat is the governmental unit journal entry for mailing out tax bills?
Taxes receivable
Allow. for Uncollectible Taxes
Revenues
What is the governmental unit journal entry for the approval of payroll payable?
Wage Expenditure
Vouchers Payable
What is the governmental unit journal entry for the payment of interest?
Interest Expenditure
Cash
What is the governmental unit journal entry for the collection of funds by a general fund that belong to a special revenue fund?
Cash
Due to the Special Revenue Fund
What is the governmental unit journal entry to close out a budget at the end of the year?
Appropriations
Budgetary Fund Balance
Estimated Revenues
What is the governmental unit journal entry to close out the actual revenues at the end of the year?
Revenues
Expenditure
Fund Balance
What are the governmental fund journal entries to close out purchase orders at the end of the year?
Budgetary Fund Balance Reservered for Encumbrances
Encumbrances
Fund Balance
Fund Balance Reserved for Encumbrances
What are the internal service fund journal entries to record the sale of property to the general fund?
Due from the General Fund
Operating revenues
COGS
Inventory
What are general fixed asset group journal entries if equipment is sold by a governmental unit?
General Fixed Asset Group:
Investment in Fixed Asset
Fixed Asset
General Fund:
Cash
Other Financing Source
What are capital projects fund journal entries if a project is approved, financed by bonds and ultimately completed?
Voters authorize issuance of bonds to construct project
NO ENTRY - FOOTNOTE ONLY
Cash
Other financing sources - proceeds from sale of bonds
Descrip: Sold bonds approved by voters
Expenditures
Cash
Descrip: Spent proceeds to build project
Other financing sources - proceeds from sale of bonds
Expenditures
Cash
Descrip: Closed out the capital project
What are the general long-term debt group J/E upon approval of sale of bonds by the voters?
Amount to be Provided
Bonds Payable
Descrip: Sold bonds approved by voters
Amount that is provided in the Debt Service Fund
Amount that is to be provided
Descrip: Excess of face amount deposited in the Debt Service fund to repay bonds
What are the journal entries for the transfer of a newly completed project to the general fixed asset group?
School Building
Investment in School Building
What are the J/E in the debt service fund for the deposit of funds to repay bonds?
Cash
Other financing source - operating transfer from the capital projects fund
If a donor contributes cash to a not-for-profit organization and designates the use of the funds, what are the initial J/E?
2XX9 - Temporarily Restricted Net Assets
Cash
Contributions
If a donor contributes cash to a not-for-profit organization and designates its use, what are the J/E when the funds are identified for such use?
Temporarily Restricted Net Assets
Reclassification - Building
Cash
2XX0 - Unrestricted Net Assets
Cash
Reclassification - [Describe]
Building
Cash
All funds used in governmental accounting use the modified accrual method of accounting except…
Enterprise Funds
Internal Service Funds
Non-expendable trust funds
Pension trusts
All of which use full-accrual accounting
All funds used in governmental accounting use the long term debt group and the debt service fund to account for long term debt obligations except…
Enterprise Funds
Internal Service Funds
Both (proprietary funds) of which account for their own debt service
All funds used in governmental accounting do not prepare a statement of cash flows except…
Enterprise Funds
Internal Service Funds
Non-expendable trust funds
Pension trusts
All funds used in governmental accounting prepare either a “statement of revenues and expenditures” or a “statement of revenues and expenses” except:
Agency Funds
Fixed Assets Group
Long Term Debt Group
The governmental funds of a governmental unit include
Green St. Patricks Day Clover General Funds Special Revenue Fund Debt Service Fund Capital Projects Fund
The fiduciary funds of a governmental unit include
PIPA
Private Purpose Trusts (Expendable Trust Fund or Non-expendable Trust Fund)
Pension Trust Funds
Agency Funds
The proprietary funds of a governmental unit include:
ISE Tee’s Purple Shirt
Internal Service Funds
Enterprise Funds
What is the difference between GAAP and IFRS with regard to reversal of impairments of operating assets?
IFRS permits reversal of impairment losses if the asset value has increased.
GAAP does not permit reversal of impairment losses to operating assets.
What is the difference between GAAP and IFRS with regards to research and development?
GAAP: All R&D is expensed
IFRS: Research is expensed but development is capitalized if technical feasibility has been attained, there is an intent to complete, the item can be sold or used, future economic benefits can be demonstrated, resources to complete are available and development stage expenses can be measured.
What is the difference between GAAP and IFRS with regard to Depreciation?
GAAP permits component, composite or group depreciation
IFRS: REQUIRES COMPONENT DEPRECIATION
What is the difference between GAAP and IFRS with regards to Sale-Leaseback?
GAAP: Gain on the sale is not recognized immediately unless the leaseback term is 10% or less of the life of the property
What is the difference between GAAP and IFRS with regards to inventory?
GAAP: LIFO is permitted; reversals of LCM write downs are not permitted; LCM uses the median of the ceiling, floor, and replacement cost
IFRS: LIFO is NOT PERMITTED, reversals of write downs are required if the inventory has increased in value; LCM uses net realizable value
What is the difference between GAAP and IFRS for unlisted (non-publicly traded) securities?
GAAP: Permits Cost, Equity, or Fair Value Method
IFRS: Requires Fair Value, unless the value cannot be determined.
What is the difference between GAAP and IFRS with regard to reclassification of available for sale securities?
GAAP: Reclassification from available for sale to and from held to maturity is permitted
IFRS: Reclassification from available for sale to and from held to maturity is NOT permitted.
What is the difference between GAAP and IFRS with regard to contingent liabilities?
GAAP: If a point estimate cannot be made, but a range can be estimated, the contingency is valued at the bottom end of range.
IFRS: If a point estimate cannot be made, but a range can be estimated, the contingency is valued at the midpoint of the range.
What are some differences between GAAP and IFRS with regard to deferred taxes?
GAAP uses a valuation allowance if deferred tax benefit is not likely to be realized
IFRS merely records it at the amount which will likely be utilized
GAAP classifies as either current or non-current
IFRS always classifies as non-current
GAAP requires accrual only if the more likely than not standard is satisfied/ probable
IFRS requires accrual using “expected value” analysis
What is the difference between GAAP and IFRS with regard to construction contracts?
GAAP does not permit % of completion for service contracts
GAAP permits completed contract method under certain circumstances
IFRS requires % completion for service contracts
IFRS precludes/ prevents the use of completed contract unless revenue cannot be reasonably estimated (then something akin to cost recovery is used)
What is the difference between GAAP and IFRS with regard to extraordinary items?
Separate classification of extraordinary items is NOT PERMITTED under IFRS
What is the difference between GAAP and IFRS with regard to deferred collection receivables?
GAAP: Only receivables with payment terms exceeding one year are recorded at present value
IFRS: All receivables are recorded at present value
What is the difference between GAAP and IFRS with regard to a conversion feature into stock?
GAAP: Only values the conversion feature if it is evidenced by a traded warrant (cash conversion features are always valued)
IFRS: Values all conversion features
