F8 NFP Accounting and Government Accounting Flashcards
What is the journal entry to close the budget (not close activity)?
DR Budgetary Control
DR Appropriations Control
CR Estimated Revenues Control
What are the characteristics of a proprietary fund?
- Accrual accounting is used
- Fixed assets and long-term debt are reported on the statement of net position
- have economic resources measurement focus.
What tis the purpose of recording an encumbrance in governmental accounting.
Encumbrances record purchase orders and commit funds needed to pay for the ordered goods and services.
Imposed non-exchange transactions include:
taxes imposed on non-exchange transactions like fines or wealth like property taxes.
An allocation, using an appropriate allocation basis, must be made between the fund-raising activities and ________ materials or __________ services where the costs are combined.
- educational
- program
What accounting method can be best described as being based on the flow of current resources approach, which is very close to cash flow?
Modified Accrual Accounting
Statement of Financial Position is similar to:
Balance Sheet
Statement of Activities is similar to:
Income Statement and Retained Earnings
Statement of Cash Flows
Statement of Cash Flows
Fixed asset transactions in the general fund are not treated as current items in general fund but rather an expenditure item. It is reported in the
government-wide financial statements
NFP: The external financial statements do no focus or present funds, they do not follow GASB presentation. What is the focus?
The focus is to present financial statements as a whole.
Non Gov’t, NFP org: If money was borrowed to buy a truck, what section of the statement of cash flows is the transaction recorded in?
When the cash is borrowed, it’s recorded as an inflow from financing activities. When the cash is paid for the purchase of the truck, the cash is recorded as an outflow from investing activities.
