Roger Chapters 21-23 Flashcards
Stmt of cash flows, partnerships, governmental accounting
What are the four fiduciary funds and what do they do?
Pension trust: for government pension
Investment trust: Multiple government entities pool resources and invest them
Private purpose trust: Money held for the benefit of private persons or organizations (unclaimed tax refunds, scholarships, money for research)
Agency/custodial fund: Collects money and gives it to other funds. Has no fund balance, only assets and liabilities.
What are the two infrastructure schedules in the RSI?
Schedule on condition of infrastructure
Schedule comparing needed and actual expenditures for maintaining infrastructure
What is special about the operating and investing sections on a statement of cash flows for a proprietary fund?
Interests and dividends are in the investing section
The investing section does not include capital asset acquisition or disposal
What are some things you would find in the notes to the financial statements in the general purpose government financial statements?
Summary of accounting policies Disclosures on various accounting topics (ex: cash, interfund balances and transfers, etc) Related party transactions Description of the reporting entity Segment information for enterprise funds Capital asset impairment
What are the five governmental fund accounts and what do they do?
Permanent fund: Money that is invested permanently and can’t be spent. Interest can be spent.
Debt service fund: Pays bond interest and principal
Capital project fund: For construction activity
Special revenue fund: Money earmarked for a specific purpose
General fund: “Junk account” drawer account. For stuff that isn’t specifically any of the other funds
PD - Consents to - Special Grass
What disclosures are required if you use the direct method?
Schedule to reconcile net income to cash flows from operations
Schedule of non cash investing-and financing transactions (ex: stock conversion from bonds)
What is derived tax revenue?
Governmental revenue from taxes on self assessed exchange transactions.
Ex: Sales tax, income tax
What is the journal entry for when you receive goods that you ordered?
- reserved for encumbrances
- encumbrances
- expenditures
* vouchers payable
What disclosures are required if you use the indirect method?
Cash payments for interest and income taxes
Schedule of non cash investing and financing transactions
What are the two statements under the governmental fund financial statements?
Statement of net position
Statement of revenues, expenditures, and changes
What is the exact method for partnership admissions?
Partner pays exact amount to get exact % of share in the partnership
What are the five categories of a fund balance?
- Non-spendable: can’t be spent for legal or physical reasons
- Restricted: externally or legally restricted (imposeed by law)
- Committed: committed due to formal government action
- Assigned: intended for a specific purpose, but none of the above
- Unassigned: Not restricted or any of the above
What can you accrue for under modified accrual accounting for goverment?
Property taxes (the first 60 days of the next year applies to the PRIOR year)
Grants
What two statements are in the government-wide financial statements?
Statement of net position (consists of governmental, enterprise, and total component sections)
Statements of activities
What are transactions entered willingly by parties (voluntary govermental revenue)?
Governmental revenue consisting of unrestricted grants and donations
Becomes revenue when elgibility is met
What are major funds?
- General fund
- Any other fund that is both 10% or more of total category assets, liabilities, or revenues/expenses in governmental or enterprise category AND %5 or more of total governmental and enterprise assets, liabilities, revenues/expenses
- Any other funds management beleuves are useful to present seperately
What are the two proprietary funds and what do they do?
Internal fund: Fund for people inside the government
Enterprise fund: Fund for outside and inside the government. User fee basis (ex: buses/transit, airports, utilities)
What are the three statements under proprietary fund financial statements?
Statement of net position
Statement of revenues, expenses, and changes
Statement of cash flows
What are the steps for retiring a partner in a partnership?
- Make sure assets and liabilities are at fair value
- Reduce the retiring partner’s account by the retirement payment
- If the partner’s retirement account goes below zero, allocate the appropriate % amount from the other partners to get it to zero
What are the five parts of general purpose government financial statements?
- Management discussion and analysis (MD&A)
- Government wide financial statements (2)
3 Fund financial statements - Notes to the financial statements
- Required supplementary information (RSI) other than MD&A
What is the journal entry to book a government’s budget for the year?
- estimated revenues
- estimated other financing sources
* budgetary fund balance - unreserved
* appropriations
* estimated other financing uses
What are the two statements under fiduciary fund statements?
Statements of net position
Statement of revenues, expenses, changes
What is the journal entry for when you order goods?
- encumbrances
* reserved for encumbrances
What is the journal entry to assess property taxes for the year?
- property taxes receivable
- allowances for uncollectibles
- revenues
- deferred revenues
What are the four types of required supplementary information (RSI)?
Budgetary comparision schedules
Information about infrastructure assets
Claims development information when the government sponsers a public entity risk pool
2 pension schedules - schedule of funding progress, schedule of employer contributions
What is imposed non-exchange transaction revenue?
Governmental revenue that is assessed on assets or rights of non governmental entitites.
Ex: Property taxes, forfeits, fines, etc
What type of transactions are included in the financing section of a statement of cash flows?
Issuing stock, bonds, notes payable, etc
Dividends paid to shareholders
Borrowing or repaying a loan
What is the bonus method for partnership admissions?
New partner pays bonus to existing partners or existing partners pay bonus to new partner
BAR - bonus adjust right
What is included in the management discussion & analysis? (MD&A)
PY comparision Individual fund statements Variance analysis Expected events Long term activities
What is a component unit?
Legal, seperate organization for which elected officlas of the primary government are accountable
What type of transactions are included in the investing section of a statement of cash flows?
Loan and & principal collection
Investments (AFS & HTM) aquired or disposed of
PP&E/fixed assets acquired or disposed
How are interest and dividends received/paid treated under IFRS on the statement of cash flows?
Interest received - investing
Dividends received - investing
Interest paid - financing OR operating
Dividends paid - financing
What are the four different types of cash transfers between funds?
- Operating transfers - moving cash from one fund to the next
- Quasi-external transactions - payments from one fund to another for services or goods that are being provided (as if to an outsider)
- Reimbursements - Repayments from one fund to another
- Loans - Temporary transfers between funds that are to be repaid later
What is government mandated non exchange revenue?
Governmental revenue where one level of government provides money to another for a specific purpose.
Becomes revenue when the elgibility requirement is met.
Ex: Federal grant.
What are the four sections on the statement of cash flows for a proprietary fund?
Operating activities
Investing
Non-capital financing
Capital and related financing
What is the goodwill method for partnership admissions?
New partner adds new goodwill to the partnership
GAL - Goodwill adjust left
What are the steps for liquidating a partnership?
- Assume all non-cash assets are sold for zero
- Allocate loss to all partners based on profit/loss %
- If one partner has a deficit balance, allocae to remaining partners based on new profit and loss %
