Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

FAR 2 > Gov't Accounting > Flashcards

Gov't Accounting Flashcards

1
Q

In stmt of activities, the functions format are divided into three categories, what are they?

What is net revenue equal to?

A

Gov’tal activities

Business type activities

Component units

Net revenue = function revenue - function expense

  1. Exchange revenue - fully recognized rede venue
  2. Non-exchange revenue -recognized when all condition entitle tithe monies have been met
  3. Derived revenue- (taxes derived from sales or income)
  4. Imposed revenue - mandatory expenses that have to pay when levied ( penalties, fines and property taxes)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How to Determined if an entity is a legal separate org or component unit?

A
  1. Whether The primary government can elect and terminate the elected officials, yes, a component unit.
  2. Whether the PM is financially accountable for the component, if yes, a component unit
  3. Whether the PM have to approve all of the following 1) determine budget, 2) levy taxes and set user fees, 3) issue bond debt
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What kind of reporting classified as blending reporting?

When to report discrete presentation?

A

When the component is at service of PM, and he governing gun body is substantially the same as the PM, in this case, do the combined (blend) FS.

Discrete: if the entity is not financially accountable that it replies on the PM, the entity is a CU and the reporting is always discrete.

And all other component units( the ones provide service not only to PM that should also uses discrete reporting, it will have a separate column to the right of the gov’t ‘s info).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What disclosures will be required to disclose for compliment unit?

A

The CU included in the reporting entity

The rational for including the CU, how it is presented (discrete or blending) in the gov’t -wide stmt

The availability of each FS for CUs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Q I missed

  1. Stmt of activities measures what?
A
  1. Operational accountability
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Assets (tangible and intangibles) when to capitalize when to expense?

A

Historical site: capitalized but not depreciated

Intangible (modification of FV computer software) capitalization criterion are similar to fixed asset improvements a cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

JE for GF and other related funds, and gov’t wide fund

  1. Do you ever report budgetary entries on gov’t wide?
  2. If property tax (special assessment is the similar manner) is levied, do you report in gov’t wide? What are th entries look like in both gf and gov’t wide?
  3. Do you ever record on gov’t wide for bond issuance or payment including interests?
A
  1. No, never!

gf: dr property tax receivable (full amt)
Cr. property tax revenue.(Amt can be collected)
Cr. uncollectable allowance (full amt * bad debt amt)

Gov’t wide: (record when property tax is levied)
Property tax receivable. (Full amt)
Property tax revenue. (Collectable amt)
Bad debt amt

  1. Bond issuance:
    GF: dr. cash. Cr. OFS-bond proceeds

Gov’t wide: dr. cash Cr. B/P

Bond repayment with interest
Gf: expenditure- interest
Expenditure - principle
Cash. Full amt

Gov’t wide: B/P
Interests expense
Cash. Full Amt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Gov’tal and gov’t JE

  1. When purchase order is issued and then paid for assets purchased, JE record for both gf and gov’t wide.
A

When purchase order is issued
Gf: encumbrance (full purchase amt)
Budgetary FV reserved for encumbrance
Gov’t wide: no entry ever for budgetary entries for gov’t wide

When paid:
Gf: 1. Dr. Budgetary FV reserved for encumbrance
Cr. encumbrance (budget amt)

Dr. Expenditure.- policy car (for actual amt)
Cash or A/P. (Actual amt)

Gov’t wide:
Assets - police car (actual amt)
Cash / A/P. (Actual amt )

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Is there’s any depreciation expense for gf?

If there are transfer from GF to DSF, treatment for need to be repaid, and not need to repaid?

A

No, depreciation expense on,yo report on gov’t wide, record the same as the for profit business

Inter-fund Transfer:

Need to be repaid record as:
GF: dr due from DSF Cr cash
DSF: dr cash Cr. due to GF

No repaid needed:
GF: dr. advance to DSF Cr. cash
DSF: dr. cash Cr. advance from GF

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the problems need to be careful when property tax is levied at the den of the current year, but not due until next year?

A

Issue: record as
Dr. PTR. (Full amt)
Cr. uncollectible allowance- current
Cr. DEFERRED inflow of resources **

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q
  1. Accounting for delinquent taxes
    When specify the tax won’t received until a certain period, then how to record the entry?
  2. What if the deferred revenue is not collected at year end, how to JE it?
A

Both e receivables and its related uncollectible account is report as delinquent.

JE: dr PTR -delinquent
Dr. Uncollectible taxes - current
cr. PTR - current
Cr. Uncollectable taxes - delinquent

When the uncollectable account is changed, the allowance account is adjusted accordingly. If estimates is too low, further revenue will be decreased, if too high, then rev is increased.

  1. If didn’t paid at the fiscal year or first 60 days of the subsequent year, the revenue can’t be recognized.
    JE: dr. Revenue Cr. deferred inflow of resources
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q
  1. How to record fines and penalties on delinquent taxes?

2. How to record general fund revenues and expenditure?

A
  1. Fines and penalty receivable - current
    Cr. Est. uncollectable fines and penalties - current
    Cr. revenue
  2. GF revenues and expenditures are recorded when it actually legally due
    JE. Revenue: Dr. Cash. Revenue control

JE. Expenditure. Dr. Service expenditure. Cr. cash

If revenue not due but received
Dr. Cash. Cr. deferred inflow of resources

Wren received: dr. Deferred inflow of resources
Cr. revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What kind of funds are record in special revenue fund? And restricted or committed for what?

Where are the special revenue fund usually receive from?

A
  1. Fund are usually restricted or committed for capital project fund, DSF, or permanent damage.
  2. Inter- gov’tal fund transfer
    Transfer from GF
    Voluntary grants

The monies are usually conditional, when received the cash, but condition didn’t met, still can’t recognize revenue

Record before condition met:
dr cash cr. grant received in advance

When condition met:
Dr grant received in advance
Cr. grant revenue

If there are time restriction, before time is met, the record is:

Dr. Cash. (Full amt)
Cr. revenue (current recognized amt)
Deferred revenue inflow. (Delinquent amt)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How to record Voluntary grant expenditures?

A

Record expenditure first, after the expenditures happened, then the entity can seek for reimbursement (expenditure driven or reimburse the driven), so recognize revenue at the reimbursement date.

If reimbursement is not received until the next fiscal year, record as
Dr. Grant receivable cr. deferred inflow of resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What kind of expenditure is for DSF?

Capital project fund

A

Only for LT debt and interest payment
LT debt is recorded off book until it matures

Interest is recorded only when it is DUE

Capital project fund: can be used for purchase large capital assets, because it combined resources from all over, but only used for certain capital project, then will be closed once it is over. It only record the payment of the capital assets, but the record of asset is recorded gov’t wide stmt.

If issue bond at premium of capital project, the premium is transfer to DSF as operating transfer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

JE for capital project fund

A

When recognize the construction contract
Record the encumbrance for the project
Dr. Encumbrance Cr budgetary FB

When record the progress billing

1) Reverse encumbrance
2) dr. expenditure cr. contract payable

At payment date, If there are retained %, record the payment as:

Dr. Contract payable (full amt)
Retained %.
Cash. Rest

At the end of the contract period, when clear all the payment, record the retained % as:
Retained %
Cash.

** no need to create additional expenditure account

17
Q

What kind of revenue and expenditures perm fund receive or paid? Any JE ?

A

Usually the fund recorded in the perm fund is the endowment funds

If the earnings from endowment is expendable, it is,l be transferred to the fund type that is responsible for that expenditure.

He endowment income includes: periodic income and capital gains

Periodic income less manage your fees are fully expendable,

Capital gains are not expendable

Property held for investment by endowment are recorded at FV, any gains are recognized in investment income.

18
Q

Common confusion for me

Is transfer in from GF to DSF count as revenue?

A

No, it’s OFS- transfer in, not revenue, if DSF received grant, then that’s revenue

19
Q

What kind of method can be used for enterprise fund CF?

Unser enterprise fund, what transactions have no different compare with other gov’tal funds?

A

Only direct method

Residual transfer and operating transfer
Record as: dr. due from GF. Cr. billing to department (an operating revenue account)

Stmt of net position
Assets ( current and capital assets)
Liabilities (current and no current liabilities)
Net position (net investment in capital assets, restricted -by donor or law, and unrestricted)

20
Q

Stmt of CF for enterprise fund

How many sections and what are they? What kind of method to use?

A

Four sections
Operations - from production of good and services only (exclude transfers) (i.e. Receipts from customers / interfund service provided, cash payments for employees / other supplies and services, cash payment for interfund service provided)

Non-operating financing - from debtor activities not related to capital transactions (ie operating grants) (borrowing and repayment for debt not related to capital assets,
Borrowing loans, grant proceeds, grant payment to other gov’ts, transfer to and from other funds, tax receipts not from capital related, and interest paid to noncapital related vendor payments)

Capital financing - from disposal or acquisition of capitals assets (include advances from other funds to finance capital assets only) (borrowing and repayment for capital related, proceeds from capital grant or contribution, transfer from or to other capital projects, payment related to capital acquisition, capital type special assessment, tax levies related to capital or debt service)

Investing - G/L in investment and creditor activities and interests ( receipts of interest, loan collections, proceeds from the sale of investment, receipts of interest on customer deposits, change in FV of investment subject to FV reporting and classified as cash equivalents, loan made to others,purchase of investments)

21
Q

What are interfund transfers?

A
  1. Loans
  2. Reciprocal quasi external transaction
  3. Reimbursement
  4. Residual transfer
  5. Operating transfer

Reciprocal transfer occurs from doing business with other gov’t units (billing for service)

22
Q

How to calculate stmt of cash flow items

  1. net cash receive from customers
  2. Net cash paid for supplies
  3. Cash paid to employees
  4. cash flow from operations
A 
1. Operating revenue 
\+ customer receivable (beg)
- customer receivables (end)
- write offs (bad debt)
= net cash provided from customers 
2. Cash paid to supplies
Supplies and materials 
\+ repair and maintenance 
\+ utilities 
\+ other operating expenses
= total expenses cash outflow

+ A/P (beg)
- A/P (end)

= cash paid to suppliers

3. Cash paid to employees 
Salaries and benefits 
\+ salaries and benefits (beg)
- salaries and benefit (end) 
\+ compensated absence payable (beg)
- compensated absence payable (end) 
= Net cash paid to employees 
FINALLY 4. Cash flow from operations 
Cash receipts from customers
\+/- other cash receipts (uses)
- cash paid to suppliers 
- cash paid to employees 
= net cash provided (used) by operating activities
23
Q

Stmt of cash flow format

A

Cf from operating activities

Receipts from customers 
Payment to employees/ suppliers 
Internal activity - payment to other funds 
Claims paid to outsiders 
Other cash receipts ( payments)

Net cash provided (used) by operating activities

Cf from no capital financing activities
Operating transfers to / from other funds
Net cash provided (used) by noncapital financing activities

Cf from capital and related financing activities
Proceeds from capital debt
Capital contribution
Purchases of capital assets
Principles and interests paid to capital debt
Other receipts (payments)

Net cash provided (used) by capital and related capital activities

Cf from investing activists
Proceeds from sales and maturities of investments
Interest and dividend
Net cash provided by investing activities

Net increase (decrease) in cash and equivalent

Beg of cash balance
End of cash balance

FAR 2 (29 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions