Deck 22 Flashcards Preview

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Flashcards in Deck 22 Deck (20):

Long - term debt that is supposed to be retired within one year with common stock should be treated as what kind of liability?

Long-term liability (Current if retired with current liability)


Expendable trust:

Can spend everything in the trust


Examples of special revenue funds:

Sales tax, gasoline tax, special fees, admission fees, and parking fees


What two governmental funds do not use encumbrances?

Debt service fund and Permanent fund


Journal entry to record payment of interest under the debt service fund

Dr. Expenditure and Cr. cash


Journal entry to record payment of principal on bonds under the debt service fund

Dr. Expenditure and Cr. cash


Journal entry to record unrestricted gov't grant

Dr. Cash and Cr. Revenue


Journal entry to record restricted gov't grants (revenue when spent)

Dr. Cash and Cr. Revenue collected in advance


Journal entries to recognize revenue restricted by a cost reimbursement contract

Dr. Expenditure and Cr. vouchers payable; Dr. revenue collected in advance and Cr. Revenue


Journal entry to record capital lease equipment under gov't accounting

Dr. Expenditures and Cr. Other financing sources


Earnings that will be used to benefit the public should be recorded in what governmental fund?

Permanent fund


Net Position (proprietary funds) displays three categories of equity (RUN):

Restricted, unrestricted, and net investment


Difference between fund balance and net position (gov't accounting); what funds do they show up in?

Fund balance: shows up in GRaSPP Funds; Net position: proprietary funds (similar to equity and are shown in balance sheet)


Internal service fund vs. enterprise fund

Internal service: funds used for other departments; Enterprise fund: funds provided to the general public


Expense components for municipal landfills under enterprise funds:

Cost of equipment, cost of gas monitoring, and cost of final cover/capping


Two financial statements that are required for fiduciary funds:

Statement of fiduciary net position and statement of changes in fiduciary net position


Interfunds transfers are recorded as:

Other financing sources (uses)


Which of the three main types of funds requires the statements of cash flows?

Proprietary funds


When a government has/does not have monitoring, what fund is used?

Monitoring: Special revenue fund; No monitoring: agency fund


When a governmental unit has/does not have an obligation/liability, what fund is used?

Has obligations: Debt service fund; Not obligated: agency fund