govern

Question 1

governmental funds

Answer 1

general, special revenue, capital projects, debt service, and permanent

Question 2

proprietary funds

Answer 2

enterprise funds and internal service funds

Question 3

A component unit

Answer 3

legally separate organization for which the primary government is financially accountable
financial accountability exists if the separate organization (1) is financially dependent on the primary government and (2) has a financial benefit or burden relationship with the primary government.

Question 4

Imposed nonexchange revenues.

Answer 4

Property taxes and fines ,forfeitures represent

Question 5

where general long term lia report in gover?

Answer 5

general long term lia report in the governmental activity column of G WIDE;
ex; general long term liability
long term lia is not recog on govern FUND

Question 6

short term lia report in gover?

Answer 6

short term lia report in both gover WIDE and FUND

ex: tax anticipation note, utility bond ( in enterprise fund)

Question 7

wut is debt service fund ?

Answer 7

A debt service fund is created specifically to account for resources restricted, committed, or assigned to expenditure for principal and interest.

Question 8

budgetary fund balance entry?

Answer 8

Dr estimated rev (asset, debit)
              Cr appropriation (lia) , amt authorized to spent for the government

Question 9

encumbrance? entry?

Answer 9

to record commitments to purchase goods or services

Dr encumbrance , Cr encumbrance outstadning

Question 10

wut entry when govern issue purchase order?

Answer 10

Dr encumbrance, Cr encumbrance outstanding

when goods received, reverse encumbrance entry , then book Dr expenditure, Cr voucher payable

Question 11

in gover WIDE, wut is special items

Answer 11

Special items are significant transactions or other events within the control of management that are either unusual or infrequent. They are reported separately after extraordinary items.

Question 12

expenditure for principal and interest in government fund r recognized when?

Answer 12

recog only when these amount r due

Question 13

Imposed nonexchange revenues other than from property taxes recog wen in acctg period?

Answer 13

recognized at the same time as the recognition of the assets unless time requirements apply`

Question 14

where to report construction in progress?

Answer 14

not in capital project fund,

report it in gov WIDE

Question 15

wut is budgetary comparison schedule?

Answer 15

it is a required supplementary information,

contain orginal, final budget and actual inflow, outflow

Question 16

property tax entry in gover FUND ?

Answer 16

DR Property taxes receivable – current $600,000
Cr Property tax revenue 575,000
Cr Allowance for uncollectible property taxes – current
25,000

Question 17

wut RSI include? where it present

Answer 17

it present in Annual Financial Report
RSI include: schedule, STAT, budgetary comparison schedule, 4) other information that is an essential part of financial reporting

Question 18

in govern,a fund is

Answer 18

basic accounting unit,

used to ensure fiscal compliance

Question 19

private purpose trust fund

Answer 19

is not a special revenue fund

Question 20

how to report prepaid insurance in govern FUND ?

Answer 20

(1) the purchases method, in which an expenditure is reported when the policy is purchased
(2) the consumption method, in which an expenditure is reported when the asset is consumed.

Question 21

when to use discrete presentation ?

Answer 21

when it is legally separated entity AND have no financial benefit or burden relationship

Question 22

wut is correct approach to note in Govern FS ?

Answer 22

notes r essential in presentation

focus on primary govern : 1) govern acti 2) busines acti 3) major funds , 4) nonmajor funds in aggregated

Question 23

wut is a component unit of a goverN?

Answer 23

component unit is a legally separated entity
a component unit must be blended OR discretely present
A blended component unit is in effect the same as the primary government. Thus, its balances and transactions are reported in a manner similar to those of the primary government. Discrete presentation involves reporting component unit information in columns and rows separate from the information of the primary government.

Question 24

wut statements r required for special purpose govern that engaged only in business type activities (utility) ?

Answer 24

the basic financial statements and RSI include (1) MD&A, (2) enterprise (proprietary) fund statements (statement of net position; statement of revenues, expenses, and changes in fund net position; and statement of cash flows), (3) notes, and (4) RSI other than MD&A.

Question 25

three primary user groups of the external financial reports of a state government

Answer 25

citizen, lawmakers, and advocate group

Question 26

when resources r actually available and measurable to recog in govern FUND ?

Answer 26

when it available and measurable , it can also include previous year amt, cuzz these were not available back then sale tax collected but not remited ( as long as it is within 60 days)

Question 27

when does defer inflow of resource increases ?

Answer 27

when govern has legally enforceable right to levy | treat it as unearn rev, debit defer inflow , cre revenue when the period begin for which property taxes are levied

Question 28

intergovernmental revenue ?

Answer 28

should be included in estimated revenue

Question 29

how to report interfund transfer in proprietary fund statement of rev, exp and changes in fund net position ?

Answer 29

should be reported separately after nonoperating revenues and expenses

Question 30

CAFR , comprehensive annual financial report

Answer 30

``` CAFR = Indiana Farm Soybean = Infor section, Financial, Stat Infor = Lot Of Nutrient = Letter, Organization Chart, Names Fina = Many Green Field Never Brown = MD&A n audit report, Government wide, Fund statement, Note, Budgetary schedule Stat= Farmer Rev Decrease During Oct = Financial trend, Rev capacity, Debt capacity, Demographics, Operating Infor ```

Question 31

Stat is not

Answer 31

not part of basic financial statement

Question 32

estimated rev should be reported where

Answer 32

Reported on the modified accrual basis of accounting in a budgetary comparison schedule or statement.

Question 33

RSI other than MD&A is presented where and included wut

Answer 33

presented after the notes to the basic financial statements in a separate section of the CAFR (1) schedules, (2) statistical data, (3) budgetary comparison schedules, and (4) other information that is an essential part of financial reporting not part of basic FS of govern

Question 34

MD&A of govern

Answer 34

MDnA is required RSI and precede basic FS

Question 35

estimated transfer to debt service fund shown up on the budget, how does this affect budgetary balance?

Answer 35

Dr Estimated Rev, Cr Appropriation, Cr Estimated other financing uses , Cr budgetary fund bal

Question 36

fund bal changes =

Answer 36

do not include appropriation acc

Question 37

encumbrance at year end ? entry ?

Answer 37

``` Dr encumbrance outstanding, Cr encumbrance then reclass portion to assigned fund bal or commited fund bal [debit unassigned fund balance, and credit fund balance -- committed (or assigned) ```

Question 38

wut to do with outstanding encmbrance at year end ?

Answer 38

Outstanding encumbered amounts at year end are reclassified from unassigned fund balance to committed or assigned fund balance (as appropriate). If the constraint on the use of resources was imposed by the government’s highest decision maker, the amounts are reclassified as fund balance -- committed. Thus, encumbrances are never reported in the body of the statements. However, significant encumbrances are disclosed in the notes.

Question 39

wut is da focus of major fundS?

Answer 39

focus on governmental and enterprise fund | major if 10% governmental, 5% enterprise

Question 40

bond anticipation note issued at face, and proceeds was placed in capital project fund, entry ?

Answer 40

Dr cash, cr bond anticipation note payable report in capital project FUND, and gover WIDE report ONLY in govern ACTIVITY column if (1) all legal steps have been taken to refinance the notes and (2) the intent is supported by an ability to consummate the refinancing on a long-term basis

Question 41

using modified approach in govern,

Answer 41

no need to depreciate the asset

Question 42

infrastructure asset in govern?

Answer 42

do not need to be depreciated

Question 43

governmental activity column

Answer 43

general capital asset and general long term lia lia: general oli bond, compensated absences, salaries payable

Question 44

business type activity column

Answer 44

enterprise fund, | internal fund report in govern ACTIVITY if they r mainly serve government

Question 45

fiduciary fund in govrn WIDE ?

Answer 45

government WIDE does not report fiduciary fund

Question 46

long-term liabilities are directly related to and expected to be paid from a proprietary fund, such as an enterprise fund, where to report ?

Answer 46

in the proprietary fund and govern WIDE NET POSITION, NOT ON GOVERN WIDE, cuzz these lia r specific fund lia

Question 47

Reconciling the net increase in fund balance to the change in net position for governmental activities

Answer 47

requires adding $6,000 ($9,000 modified accrual basis expenditure – $3,000 accrual basis expense). The change in net position is $7,500 ($1,500 + $6,000 reconciling item).

Question 48

reconciliation for fund balance / balance sheet

Answer 48

GALS BARE = GRASPP fund bal + asset (non curr) - lia (non curr) + service fund bal from Internal service

Question 49

reconciliation for fund balance / income statement

Answer 49

GOES BARE = GRASPP change in fund balance - other financing sources + expenditure from capital outlay (net of depre) + service income from internal service rev To remember where the additions and subtractions go, I just think of the movie 21 Jump Street. The number 21 will tell me when to subtract. I subtract the 2nd item in GALS and the 1st item in GOES

Question 50

a reconciliation for govern WIDE and fund statement report where

Answer 50

at the bottom of fund statements

Question 51

net investment in capital asset

Answer 51

net position include = net investment , restricted net position , unrestricted net position capital asset only (no inventory) cost of truck - AD - outstanding debt related to truck

Question 52

a defer outflow of resources from an enterprise fund is ?

Answer 52

is not lia, it is a consumption of net assets that applies to a future period, not a lia

Question 53

internal service fund received an interfund transfer of 100k in cash from general fund, how to report this in proprietary fund ?

Answer 53

the final item b4 the change in statement of rev, expe and change in fund net position for governmental fund, it is a other financing use

Question 54

FS for proprietary fund ?

Answer 54

emphasize of operating income, changes in net position, financial position and CF (direct CF is required) net position = [(assets + deferred outflows of resources) – (liabilities + deferred inflows of resources) = net position]

Question 55

CF of proprietary fund ?

Answer 55

operating non cap and cap related financing (grants, tax receips, debt proceeds, cash received or paid to other fund) investing: making, collecting loan, acquiring and disposing debt and equity instruments, interest, dividends received as return on loans

Question 56

public benefit corporation

Answer 56

proprietary fund

Question 57

in proprietary fund, cash outlay for parking meter, depreciation of parking meter is ?

Answer 57

cash outlay for parking meter is NOT operating expense, it is capital and related financing activity depreciation of parking = operating expense

Question 58

enterprise fund received a unrestricted grant, wut is this ?

Answer 58

nonoperating rev

Question 59

wut FS r required for fiduciary ?

Answer 59

statement of fiduciary net position statement of changes in fiduciary net position ( take out agency fund, total addition, total decution and change in net position)

Question 60

wut FS is required for gover FUND ?

Answer 60

statement of rev, expenditure and changes in fund balances

Question 61

a defined contribution pension plan must report

Answer 61

``` include class of employee covered employer , employee obligation to contribute ```

Question 62

reconciliation of the statement of revenues, expenditures, and changes in fund balances to the government-wide statement of activities

Answer 62

add capital asset purchased add payment of long term debt principal add internal service fund subtract book value of capital asset sold

Question 63

general capital asset report where ?

Answer 63

r all capital ssets not reproted in proprietary fund or fiduciary fund. report only in governmental activities column of WIDE

Question 64

if agency fund received 1% fee, how to record this ?

Answer 64

due to general fund, since agency fund do not recog rev

Question 65

govern WIDE statement of activities

Answer 65

may not be required to allocate depreciation

Question 66

state appropriations to a state university ? wut is this in proprietary fund ?

Answer 66

nonoperating rev

Question 67

combining fund statements are

Answer 67

part of the comprehensive financial report but not part of the basic financial statements.

Question 68

nonmajor fudn

Answer 68

As a nonmajor fund, the financial information for the Road Tax fund is combined with other nonmajor funds in the basic financial statements. Individual fund financial statements would be required to demonstrate compliance with state law in this case. Whether shown in RSI or as part of the basic financial statements, the budgetary data would not otherwise show the details of individual, nonmajor funds. In combining nonmajor funds, it does not matter if only one of the governmental funds was a special revenue fund. Because the focus of fund financial reporting is on major funds, nonmajor funds should be aggregated and do not need to be shown individually.

Question 69

defer income tax expense

Answer 69

The temporary difference generated in the year is the noncurrent part of the tax expense get the temp diff * rate

Question 70

govern allocate indirect expenses, where to report?

Answer 70

in a column separate from the direct expenses to enhance comparability with other governments Special and extraordinary expenses are reported separately at the bottom of the statement of activities.

Question 71

expected postretirement health care benefit period

Answer 71

begins at employee's date of hire and ends at the full eligibility date

Question 72

depreciable life in lease ?

Answer 72

Douglas Co. should capitalize the lease because the lease term (five years) is equal to 83% (equal to or more than 75%) of the economic life (six years). Under a capital lease, the lease is depreciated using the life of the lease if the 75% or 90% of fair market value criteria are met. If the lease transfers ownership or has a bargain purchase, the life of the asset is used to determine depreciation. (FASB ASC 840-30-35-1)