F8 - Modified Accrual Accounting Flashcards Preview

FAR Section - CPA Exam > F8 - Modified Accrual Accounting > Flashcards

Flashcards in F8 - Modified Accrual Accounting Deck (4)
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1
Q

What is derived tax revenue?

A

Derived (non-exchange) tax revenues represent taxes imposed on or derived from exchange transactions such as commercial sales (sales taxes)

2
Q

What is imposed non-exchange tax revenue?

A

Imposed non-exchange revenues represent taxes imposed on non-exchange transactions (such as fines) or wealth (such as property taxes)

3
Q

What is the journal entry to record a purchase order under modified accrual accounting?

A

Encumbrance XX

Budgetary control XX

4
Q

How should state appropriations to a state university choosing to report as engaged only in business-type activities be reported in its statement of revenues, expenses, and changes in net position?

A

As nonoperating revenues