Chapter 7 : Business Type Activities Flashcards
(25 cards)
What’s the Prop Funds Equation?
(Assets + Deferred Outflows) - (Liabilities + Deffered Inflows) = Net position
What’s the Prop Funds Equation?
(Assets + Deferred Outflows) - (Liabilities + Deffered Inflows) = Net position
What are the types of net position?
Basics of a Prop Fund?
What FS are in Prop Funds?
Describe a Statement of Net Position
Current Assets listed in order of liquidity
Divided in the 3 categories:
- Net Investment in CA
- Restricted
- Unrestricted
Describe a Operating Statement
Describe a Statement of CF
- Similarities to FASB
Describe a Statement of CF
- Differences from FASB
- GASB divides financing activities into noncapital & capital related
What’s an Internal Service Fund/
What are the types of net position?
How to report Internal Service Funds
What FS are in Prop Funds?
Describe a Statement of Net Position
Current Assets listed in order of liquidity
Divided in the 3 categories:
- Net Investment in CA
- Restricted
- Unrestricted
Restricted assets in Enterprise Funds
Set aside and cannot be spent (customer deposits)
Ideally the liabilities of such should be reported separately but is not required by GASB
Describe a Statement of CF
- Similarities to FASB
Describe a Statement of CF
- Differences from FASB
- GASB divides financing activities into noncapital & capital related
GASB Statement of CF Specifics
Acquisition of capital assets & interest expense on LT debt are FINANCING activities
CF from OPERATING activities must use the direct method
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What are some types of Internal Service Funds
Motor Pools, Central Purchasing, Storage
Issuance of supplies
Self insurance pools
Printing
How to report Internal Service Funds
Dissolving a Internal Service Fund
- Transfer assets to another fund which will continue the acitivity.
- Terminate activity and transfer
- Convert to cash and transfer
When is an Enterprise Fund used?
- Activity is financed w/ debt that is paid with revenues from the activity
- Laws/Regulations require that costs (including capital costs) be recovered by revenue of the activity NOT taxes or OFS
Restricted assets in Enterprise Funds
Set aside and cannot be spent (customer deposits)
Ideally the liabilities of such should be reported separately but is not required by GASB
