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Flashcards in Deck 13 Deck (20):

Payment of income taxes and interest (Direct method vs. indirect)

Direct: decrease in operating section; Indirect: supplemental disclosure


Two reports required for fiduciary funds

1. statement of fiduciary net position and 2. statement of changes in fiduciary net position


Agency trust fund

Fiduciary fund; collects cash to be held for another recipient (have no monitoring and no liability)


Governmental unit has monitoring vs. no monitoring

Monitoring: use special agency fund; no monitoring: use agency trust fund


Private purpose trust fund

Funds designated for specific individuals and private organizations


Encumbrances are not used for what governmental funds

Debt service and permanent funds


Government wide financial statements focus is on

Operational accountability


Royalty revenue is recognized when:

Earned (does not include anything that was received in advance)


3 main sections of the CAFR

1. Intro, 2. basic financial statements and supplementary info, and 3. statistical section


Government wide financial statements should classify net assets as:

RUN (restricted, unrestricted, net investment)


Categories of program revenue

SOC; service charges, operating grants and contributions, and capital grants and contributions


Noncapital financing activities

Borrowing for noncapital purposes as well as cash receipts from grants or subsidies or property taxes


One major component of the MDA section of a CAFR is

Compare current year results to prior year results


Where is the internal service fund and enterprise fund recorded in the Government wide financials?

Internal service: Governmental activities; Enterprise: business type activities


When to use blended presentation

If the board is the same as that of the primary government; the component unit is not a legal entity; component unit services government exclusively (if any of these is not used, use discrete presentation


Conditions that are required for artwork to not be capitalized

Collection is held for exhibition, collection is protected, items must be used to collect other items


Governmental activities vs. business-type activities for government wide financials

Gov't activities includes all GRASPP funds and internal service; business-type includes enterprise fund


Major fund rules for governmental accounting (two criteria)

1. 10% of separate columns (gov't and enterprise) and 2. 5% of total columns (general fund is always major fund)


Difference between interest received for cash flow statement for governments and regular?

Regular: include in operating section; Gov't: include in investing


Difference between interest paid for cash flow statement for governments or regular?

Regular: include in operating; Gov't: include in financing