Misc. Flashcards
Basic criterion to determine the reporting entity for a governmental unit?
Financial accountability
Capital leases effect on the government-wide statement of net position?
Asset amount- Increase
Liability amount- Increase
Treated like a capital lease
What fund would Proceeds from special assessment bonds to finance construction of sidewalks in a new subdivision?
Capital projects fund
Benefits all of the public, thats why its not enterprise fund
For defined contribution pension plan, what is required in the notes?
The types of employeees covered and the employer’s and employees’ obligations to contribute to the fund.
Under the modified accural basis of accounting, when should revenues be reconginzed?
They are “earned” when they are measureable and readily available.
J/E when money is transfered from one fund to another in the fund transfered to
Cash xxx
Interfund transfer xxx
When a county RECEIVES goods but they have NOT been paid for yet, what is the effect on encumbarances and expenditures?
Decreases encumbrances
Increases expenditures
An enterprise fund would be used when:
User charges cover the costs of general public services
Net income information can be provided for an activity
How are cash receipts and cash payments treated in a debt service fund provided by the general fund?
Cash receipts- Transfers
Cash payments- Expenditures
Which fund would most likely have fund balance non-spendable inventory of supplies?
The general fund.
The general fund will normally have supplies on hand at the end of the year
Construction in progress is displayed where for a capital projects fund?
In the government-wide finanical statements.
It would not be presented in the Capital projects fund.
A federal grant set up to finance the constrcution of a drug rehab center sould be set up in what fund?
The Capital Projects Fund
Internal service fund, J/E to record billings for services to other governmental untis
Cash xxx
Operating revenues xxx
When are grant revenues recongnized?
In the year in which the monies are used
How should encumbarances outstanding be reported at year end?
As a component of committed or assinged fund balance
Debt service fund
Remember that it is restricted and will pay BOTH the principal and the interest payments.
County issues 1,000,000 of general obligation funds at 101 to financae capital project which results in 50,000 premium. Where is everything reported
Capital projects fund for proceeds of net premium
Debt services funds for the premium
Goernmental activities column of the government-wide statmement of net position as assets and liablities.
J/E for capital lease in enterprise fund
Equipment xxx
Capital lease payable xxx
J/E for first payment of capital lease in internal service fund.
Capital lease payable (principal) xxx
Expenses control (interest) xxx
Cash xxx
For pension funds, the schedule of actuarially determined contributions shold have what amount of time?
The number of years to the extent avaiable (for a minimum 10 years)
If fund has only been in effect for 4 years, only report 4 years.
In the capital projects fund for bond anticpation notes, if the City/Town is unable to consummate refinancing, what account should be credited?
Bond anticpation notes payable
