Ninja Notes: Governmental Accounting

Question 1

Accrual basis for Fund accounting?

Answer 1

Has a current Economic resources focus; and revenues are recognized when earned.

Question 2

Modified accrual basis for Fund accounting?

Answer 2

Has a current Financial resources focus; and revenues are recognized when available and measurable.

Question 3

What is the Opening Budgetary entry?

Answer 3

Est. Revenues Control
Appropriations
Budgetary Fund Balance (plug)

Question 4

What is the Closing Budgetary entry?

Answer 4

Appropriations
Budgetary Fund Balance
Est. Revenues Control

Question 5

Governmental Funds use which basis of accounting?

Answer 5

Modified Accrual Basis.

Question 6

Permanent Fund earnings and principal?

Answer 6

Only earnings can be used to fund programs; principal remains intact.

Question 7

The Governmental Fund financial statements are?

Answer 7

> Balance Sheet

> Stmt. of Revenues, Expenditures, and Changes in Fund Balance

Question 8

Do Estimated uncollectible property tax revenue offset Revenues?

Answer 8

No, so don’t net them.

Question 9

Proprietary funds use which basis of accounting?

Answer 9

Accrual basis; orientation in Income Determination.

Question 10

The Propriety Fund financial statements are?

Answer 10

> Stmt. of Net Assets

> Stmt. of Revenues, Expenses, and Changes in Net Assets

> Stmt. of Cash Flows

Question 11

Fiduciary Funds use which basis of accounting?

Answer 11

Accrual basis.

Question 12

List the Fiduciary funds?

Answer 12

> Agency fund
Pension trust fund
Investment trust fund
Private purpose trust

Question 13

What is an Agency fund?

Answer 13

The government acts as an “agent” or custodian.

Question 14

What is a Pension trust fund?

Answer 14

The government is a trustee for a Pension plan.

Question 15

What is an Investment trust fund?

Answer 15

The government is a trustee over a series of investments.

Question 16

What is a Private purpose trust?

Answer 16

A trust that benefits various individuals and entities.

Question 17

What are the fund balance types?

Answer 17

> Restricted (by contributor)
> Commited (by gov.)
> Assigned (intended)
> Unassigned
> Non-spendable (e.g., inv.)

Question 18

What are the Fund Financial statements?

Answer 18

> Balance Sheet

> Stmt. of Revenues, Expenditures, and Changes in Fund Balance

Question 19

What are the Government-Wide financial statements?

Answer 19

> Stmt. of Net Position

> Stmt. of Activities

Question 20

What is the purpose of Government-Wide financial statements?

Answer 20

To provide Operational Accountability.

Question 21

How are Assets and Liabs. presented in the Stmt. of Net Position?

Answer 21

Showing current and non-current amounts ordered by liquidity.

Question 22

How are Capital Assets shown on the Stmt of Net Position?

Answer 22

Net of Debt.

Asset cost - accum. depr. - asset liab. = Net Assets.

Question 23

How is infrastructure accounted for the Stmt. of Net Position?

Answer 23

With the Modified approach; reported at cost with no accum. depr.

Question 24

Where are Component units reported?

Answer 24

In the Entity-Wide F/S, and not the Fund F/S.

Question 25

What are the F/S required for Gov. accounting related to Defined Benefit Pension Plans (2014)?

Answer 25

> Stmt. of Fiduciary Net Position

> Stmt. of Changes in Fiduciary Net Position

Question 26

How is the Stmt. of Fiduciary Net Position divided up?

Answer 26

> Assets
> Def. Outflows
> Liabs.
> Def. Inflows
> Fiduciary Net Position

Question 27

How is the Stmt of Changes in Fiduciary Net Position divided up?

Answer 27

>Additions
  /Contributions
  /Net Investment Income
>Deductions
  /Benefit Pmts.
  /Admin. Exp.
> Net Change in Fiduciary Net Postion