Deck 23 Flashcards Preview

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Flashcards in Deck 23 Deck (21):
1

Hierarchy of Fair Value Inputs (3 levels)

Level 1: highest priority, observable; Level: observable; Level 3: lowest priority, unobservable

2

Calculation of the amount for the finance lease asset =

PV of the lease - depreciation expense

3

Income tax expense for the current year =

Taxable income x tax rate

4

For operating leases, if rent payments are not received in level amounts, how is rent revenue recognized?

Recognize on a straight line basis

5

The market value of a bond =

PV of principal amount + PV of all future interest payments

6

How does revenue earned on investments affect the sinking fund?

Increases the sinking fund

7

Three main sections included in the CAFR:

1) Intro 2) Basic financials and RSi 3) Statistical section

8

The financial statements of governments focus on two forms of accountability (Gov't wide vs fund)

Gov't wide: operational; Fund: fiscal accountability

9

Blended presentation

Occurs when the Board of the primary government is the same as the component unit OR if the component unit serves the primary gov't exclusively

10

MD&A includes:

Easily readable analysis and analysis of significant variations (no variance analysis though)

11

What two financial statements are included in the gov't wide financial statements?

1) statement of net position and 2)statement of activities

12

Infrastructure includes:

Streets, bridges, gutters (capitalize and record as general capital assets)

13

Modified approach for capitalization

Infrastructure assets that are part of a network are not required to be depreciated

14

Basic Financial statements for governmental accounting includes

Gov't wide financials, fund financials, and notes

15

Primary government governmental activities includes which funds

GRaSPP + S

16

Primary government business-type activities includes which funds

Enterprise fund

17

Program revenue category types (SOC)

charges for Services; Operating grants and contributions; Capital grants and contributions

18

Major Fund Rules

10% of all governmental funds or all enterprise funds; 5% of all governmental funds and all enterprise funds (general fund will always be a major fund)

19

Reconcile fund balance of governmental funds and net position in gov't wide (GALES BARE)

G: GRaSPP fund balance + noncurrent assets - noncurrent liabilities + internal service fund

20

Reconcile net change in fund balance and change in net position (GOES BARE)

G: GRaSPP net change in fund balance - other financing sources + Expenditures (capital outlay) + internal Service fund

21

Where is the budgetary information found and what is included?

Required supplementary information; Comparison schedules for the general fund and each special revenue fund