Flashcards in Final Prep Deck (30):
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
Under GASB, Proceeds of debt issue would be recorded either as...
A liability, short term debt or proceeds of bonds other financing
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
The measurement focus of governmental type funds is the determination of...
Both flow of financial resources and financial position
Closed at the end of the fiscal year
Fund balance reserved for encumbrances is...
A balance sheet account
Balance sheet accounts aren't closed at end of fiscal year
Stock dividends less than 20% should...
Charge retained earnings
A corporation issuing stock should not charge retained earning for the market value of shares issued in...
Employee stock bonus
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
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
3 relationship of taxpayers to services received
Flows an balances of financial resources for governmental fund types is...
Not a primary characteristic of their structure
The initial test under FASB to determine whether an impairment of carrying amount for a long lived asset
Carrying amount exceeds undiscounted future cashflows
Assets - liabilities - encumbrances, in a capital projects fund are...
What are they not?
Extraordinary items are reported...2
1 before any cumulative effect of accounting chages
2 and after discontinued operations
What characteristic involves specified criteria that serve to screen the risks and uncertainties encountered by every entity?
An antitrust action that is unusual in nature is...
An extraordinary item
Contains instructions for filing nonfinancial statement forms with
Contains information regarding financial statements submitted
To the SEC
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
Retained earnings is a term used by both...
US GAAP and IFRS
Recognition principle for share based payment transactions don't apply to...
Employee stock ownership plan instruments
Recognition principle for share based payment transactions applies to grants of...3
1 common stock
2 stock options
3 other equity instruments to employees
Which type of fiduciary fund should not be reported in the statement of changes in fiduciary net position?
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
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
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
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
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
Transfer from the the general fund to a capital projects fund is...
An other financing used