F10: State and Local Government: Part 2 Flashcards
How is depreciation expense recognized in public colleges and universities and private not-for-profit colleges?
Not always shown for public colleges because they may report using either the proprietary fund model or governmental fund model which excluded depreciation. Private not-for-profit colleges ALWAYS recognize depreciation.
Which fund REQUIRES a statement of cash flows?
Proprietary funds
How should and enterprise fund record shared revenues received by from a local government for operating purposes?
Non-operating revenues
What is required financial statement for an investment trust fund?
Statement of changes in fiduciary net position.
What is the primary purpose of the statement of activities in the government-wide financial statements?
Operational Accountability
What two characteristics are in the statistical tables that are not in normal financial statements?
Data covering financial trends and fiscal years
How is net position classified in the government-wide financial statements?
- Net investments in capital assets 2. Restricted 3. Unrestricted
What is the equation for net position?
Assets and deferred outflows of resources minus liabilities and deferred inflows of resources.
How should an internal service fund report depreciation expense in the fund financial statements?
Operating expense
In which section should cash receipts from grants or subsidies be classified in the statement of cash flows for governmental entities?
Noncapital financing.
What qualifies as a major fund?
The fund must be both 10% of its fund category’s assets and 5% of combined governmental and enterprise assets. General fund is always included as a major fund.
True or False: Budgetary comparisons must be presented on the same basis of accounting as the adopted budget?
True
