Deck 13 Flashcards Preview

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Flashcards in Deck 13 Deck (20):
1

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

Direct: decrease in operating section; Indirect: supplemental disclosure

2

Two reports required for fiduciary funds

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

3

Agency trust fund

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

4

Governmental unit has monitoring vs. no monitoring

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

5

Private purpose trust fund

Funds designated for specific individuals and private organizations

6

Encumbrances are not used for what governmental funds

Debt service and permanent funds

7

Government wide financial statements focus is on

Operational accountability

8

Royalty revenue is recognized when:

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

9

3 main sections of the CAFR

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

10

Government wide financial statements should classify net assets as:

RUN (restricted, unrestricted, net investment)

11

Categories of program revenue

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

12

Noncapital financing activities

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

13

One major component of the MDA section of a CAFR is

Compare current year results to prior year results

14

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

Internal service: Governmental activities; Enterprise: business type activities

15

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

16

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

17

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

18

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)

19

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

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

20

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

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