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Flashcards in Final Prep Deck (30):
0

A city's budgetary entry for estimated revenues of the general fund includes...

2) it does not include...

Property taxes, licenses and fines

2) does not include proceeds of debt issue

1

Under GASB, Proceeds of debt issue would be recorded either as...

A liability, short term debt or proceeds of bonds other financing
Sources

2

Forfeited nonvested accounts of an employee benefit plan can be used...3

1 reduce future employer contributions

2 reduce expenses

3 reallocated to participant's accounts

3

The measurement focus of governmental type funds is the determination of...

Both flow of financial resources and financial position

4

Expenditures are...

Closed at the end of the fiscal year

5

Fund balance reserved for encumbrances is...

A balance sheet account

Balance sheet accounts aren't closed at end of fiscal year

6

Stock dividends less than 20% should...

Charge retained earnings

7

A corporation issuing stock should not charge retained earning for the market value of shares issued in...

Employee stock bonus

8

When there are encumbrances of $132,000 how would they be reported on the balance sheet?

Fund balance unassigned. 132,000
Reserve for encumbrances
Fund balance committed. 132,000

9

According to GASB, the primary characteristics of governmental structure are...3

1 representative for of government and separation of powers

2 federal system of government and prevalence of
intergovernmental revenues

3 relationship of taxpayers to services received

10

Flows an balances of financial resources for governmental fund types is...

Not a primary characteristic of their structure

11

The initial test under FASB to determine whether an impairment of carrying amount for a long lived asset

Carrying amount exceeds undiscounted future cashflows

12

Assets - liabilities - encumbrances, in a capital projects fund are...

What are they not?

Assigned

Not unassigned

13

Extraordinary items are reported...2

1 before any cumulative effect of accounting chages

2 and after discontinued operations

14

What characteristic involves specified criteria that serve to screen the risks and uncertainties encountered by every entity?

Selectivity

15

An antitrust action that is unusual in nature is...

An extraordinary item

16

Regulation S-K

Contains instructions for filing nonfinancial statement forms with
The SEC

17

Regulation S-X

Contains information regarding financial statements submitted
To the SEC

18

What account should be reduced if 25% of preferred stock is required and PiC exists?

2) does not exist

PiC should be reduced before retained earnings is

19

Retained earnings is a term used by both...

US GAAP and IFRS

20

Recognition principle for share based payment transactions don't apply to...

Employee stock ownership plan instruments

21

Recognition principle for share based payment transactions applies to grants of...3

1 common stock

2 stock options

3 other equity instruments to employees

22

Which type of fiduciary fund should not be reported in the statement of changes in fiduciary net position?

Agency funds

23

Agency funds should not be reported in the statement of changes in fiduciary net position because...

They involve reporting for resources held by government in purely
Custodial capacity

24

Principal market, is the market in which a reporting entity...

Would sell the asset or transfer the liability with the greatest
Volume and level of activity for the asset or liability

25

Any fair value measurement should assume that the transaction to sell the asset or transfer the liability occurs in which market?

Principal market for asset or liability

26

If there is no principal market for that type of asset or liability the entity should...

Use the most advantageous market for that asset or liability

27

What is the purpose of SFAC 4 as stated in that concepts statement?

Provide basis for establishing detailed accounting and reporting standards for non business entities

28

Transfer from the the general fund to a capital projects fund is...

An other financing used

29

Refuting employer contributions from the general fund to a pension trust fund is...

Treated as an expenditure