F9: Governmental Accounting (Part B) Continued Flashcards Preview

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Flashcards in F9: Governmental Accounting (Part B) Continued Deck (22):
1

What 4 things should be included in the MDA?

1- Description of the financial statements
2- Identity of primary government and component units
3- Economic conditions and outlook
4- Major initiatives

2

Types of things in the description of the financial statements in MDA

-An easily readable analysis
-Condensed financial statement info
-Analysis of overall position and results of ops
-Analysis of balances and transactions of individual firms
-A description of the significant assumptions

3

What 2 statements are included in the set of government-wide financial statements?

1- Statement of Net Position
2- Statement of Activities

4

What focus and method of accounting is required for both statements?

-Economic resources measurement focus
-Full accrual basis of accounting

5

Statement of Net Position Format

Assets
-Liabilities
= Net Position

6

Net Position is divided into what 3 components?

RUN
R- Restricted
U- Unrestricted
N- Net investment in capital assets

7

The term infrastructure assets refers to:

Streets, bridges, gutters, and other assets of the government

8

How are infrastructure assets reported?

As capital assets

9

2 approaches for recording capital assets

1- Required Approach
2- Modified Approach

10

Required approach definition

All capital assets are recorded and depreciated

11

Modified approach definition

-Infrastructure assets that are part of a network are not required to be depreciated
-Ongoing infrastructure expenditures are typically reported as expenses

12

Governments may use the modified approach IF they meet these two requirements:

1- Government's asset management system meets certain conditions
2- Government documentation should include data on asset preservation

13

What conditions included in requirement one of the modified approach:

-Inventory is up-to-date
-Summarized condition assessment is done
-Each year, estimate is made of amount necessary to maintain and preserve the eligible infrastructure assets

14

What conditions included in requirement two of the modified approach:

-A complete condition assessment is done at least ever 3 years
-reasonable assurance

15

As a general rule, governments should _______ works of art, historical treasures and similar assets

Capitalize at historical cost or fair value at date of donation

16

Regardless of whether collection items are donated, governments may elect to not capitalize if ALL of these 3 conditions are met:

1- Collection is held for public exhibition
2- Collection is protected
3- Collection is subject to an organizational policy

17

In government-wide financial statements, ______ are not included

Fiduciary funds

18

What is reported on the "Statement of Activities"?

Revenues & expenses using the full accrual basis

19

The net expense/revenue for each function is classified into one of 3 categories:

1- Primary governmental activities (GRaSPP +S)
2- Primary business-type activities (E, no PAPI)
3- Component units

20

3 Program Revenue Category Types

"SOC" away these revenues
S- charges for Services
O- Operating grants and contributions
C- Capital gains and contributions

21

Internal transactions that artificially "double up" on activity should be ________

Eliminated

22

Internal service fund activity should be reported in what column?

Governmental activities column