Chapter 8

Question 1

Nongovernmental not-for-profit organization financial stmt

Answer 1

statement of fin position
statement of activities
statement of cash flows

Question 2

Statement of financial position classify balances in these categories

Answer 2

1. Assets
2. Liabilities
3. Net Assets

Question 3

Purpose of stmt of activities (income stmt for profit companies)

Answer 3

report revenue and expenses, gain and losses and report changes in net assets for the period (with or without donor restrictions)

Question 4

How to recognized contributions of works of art?

Answer 4

It’s not recognized if meets these criteria: 1. If art worked are held for public exhibition. 2. Art is protected and preserved.
3. Art is subject to an organizational policy so proceeds will be used to acquire more art.

Question 5

Not-for-profit organization to be financially interrelated as defined by FASB

Answer 5

Must share both characteristics: one organization must be able to influence the. operating and financial decisions of the other. 2. Have an ongoing economic interest in the net assets.

Question 6

Modified accrual method apply to these governmental funds (GRaSPP)

Answer 6

General,
Special Revenue, Debt Service, Capital Projects funds.
Permanent

Question 7

Proprietary funds use Accrual Basis (SE) &
Economic Resources Measurements Focus

Answer 7

Service
Enterprise

Question 8

Funds using the full accrual basis of accounting and the economic resources measurements focus.

Answer 8

Fiduciary funds and Private Purpose Trust

Question 9

Fiduciary Funds (excluded from Government-wide Financials) used accrual and economic resources measurements focus (CIPPOE)

Answer 9

Custodial
Investment trust
Private purpose trust
Pension (and Other Employee benefit trust) Proprietary funds

Question 10

FUNDS TYPE

Answer 10

Question 11

Government-wide fin statements should classify net assets as:

Answer 11

1 Net Investment in capital

2. Restricted
3. Unrestricted

Question 12

Categories of program revenue:

Answer 12

SOC

S Charges (for service)

O Operating grants and contributions

C Capital grants and contributions

Question 13

State of Cash flow include funds

Answer 13

1. Include all proprietary funds (Enterprise and Internal Service Funds).

No statement of cash flow for Governmental Funds (GRaSPP) or fiduciary funds (CIPPOE)

Question 14

Cash flows from noncapital financing activities

Answer 14

Question 15

The difference between the fund financial statements and the government-wide financial statements are in reporting :

Answer 15

+ Capital Assets net of

• Accumulated depreciation
• Non-current liabilities

+Service (internal service fund) net position

(CANS)

Question 16

Recon of the change in fund balance in governmental fund financial statement to the change in net position the in government-wide financials is computed using CPAS RIDES

Answer 16

Net change in fund balance - total governmental funds

+Capital outlay

+Principal payments on non-current debt

• Asset disposal (net book value)
• Sources(other financial sources-debt proceeds)

+Revenue (measurable but available)

• Interest expense (accrued)
• Depreciation Expense

+Internal Service Fund net revenue

Change in the net position of governmental activities

Question 17

What accounting basis does GASB recommend that governmental funds budgets be prepared?

Answer 17

Modified Accrual