F9 - M4 - Transactions and Events: Part 2

Question 1

_____________represent an encumbrance or commitment of the available appropriations of a governmental fund.

Answer 1

Open purchase orders

Question 2

For purposes of internal accounting, What is the journal entry for issuing a PO.

Answer 2

Dr Encumbrance and Credit Budgetary Control

Question 3

When the order is filled, the encumbrance journal entry

Answer 3

(J/E) is reversed for the amount originally recorded and the actual expenditure is recorded in a separate J/E.

Question 4

Encumbrances are not identified on the face of a governmental fund’s external financial statements, but may be ________

Answer 4

disclosed.

Question 5

_________ may include interfund loans (due to/from), interfund services provided or used, and nonreciprocal interfund transfers or reimbursements.

Answer 5

Interfund activity

Question 6

_____________ have a positive effect on net position and are reported following assets but before liabilities

Answer 6

Deferred outflows of resources

Question 7

______________ have a negative effect on net position and are reported following liabilities but before equity.

Answer 7

deferred inflows of resources

Question 8

Deferred inflows and deferred outflows capture transactions for government that would be recorded as _____________- in commercial settings.

Answer 8

other comprehensive income

Question 9

Assets associated with unavailable resources and derivative instruments used for hedging are types of transactions classified as

Answer 9

deferred outflows and inflows of resources.

Question 10

Accounting and reporting for pensions uses the concepts of ___________ to account for changes in a government’s pension liability.

Answer 10

deferred outflows and inflows

Question 11

_______________ also capture unusual transactions unique to government such as measurable but unavailable revenues, billings that have not met time requirements, etc.

Answer 11

Deferred inflows and deferred outflows

Question 12

Governmental fund balances are classified in one of five ways. NU CAR

Answer 12

Nonspendable, Unrestricted, Committed, Assigned, Restricted

Question 13

_______ is the only fund that can have a positive unassigned fund balance

Answer 13

General Fund

Question 14

Net position reported in the government-wide and proprietary fund balance sheets is reported in three categories that focus on the accessibility of the underlying funds: ( What are the categories)

Answer 14

n et investment in capital assets, restricted, and unrestricted.