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Superfast CPA > Governmental Accounting > Flashcards

Governmental Accounting Flashcards

1
Q

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

A

The citizenry who the government is accountable to

Legislative & oversight bodies who represent the citizenry

Investors & creditors

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2
Q

Four financial reporting implications associated with the legally adopted annual budget

A

Expression of public policy

Expression of financial intent

Form of control

May provide basis for evaluating performance

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3
Q

Paramount objectives of financial reporting for state and local governments

A

Accountability

Interperiod Equity - makes sure current generation of citizens doesn’t shift the burden of paying their shit to the next generation

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4
Q

Government Funds

A

General Fund

Special Revenue Fund

Capital Projects Fund

Debt Service Fund

Permanent Fund

They use Modified Accrual Accounting & flow of financial resources - available & measurable

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5
Q

Proprietary Funds

A

Enterprise Fund

Internal Service Fund

They use full Accrual Accounting

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6
Q

Fiduciary Funds

A

Custodial Funds

Pension Trust Funds

Investment Trust Funds

Private-Purpose Trust Funds

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7
Q

Budgetary Accounting Journal Entries

A

Balanced Budget
Dr. Estimated Revenues 100
Cr. Appropriations 100

Surplus Budget
Dr. Estimated Revenues 110
Cr. Appropriations 100
Cr. Fund Balance 10

Deficit Budget
Dr. Estimated Revenues 90
Dr. Fund Balance 10
Cr. Appropriations 100

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8
Q

Which funds need a budgetary comparison schedule

A

General fund & major special revenue funds

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9
Q

Other Financing Uses and Other Financing Sources

A

Other financing uses are transfers out to other funds while other financing sources are transfers in from other funds

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10
Q

Effects of closing accounts on fund balance

A

Closing credit accounts like appropriations & actual revenues would increase fund balance and closing debit accounts like expenditures & estimated revenues would decrease fund balance so if a credit balances are greater than debit balances then fund balance increases and vice versa

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11
Q

Encumbrance accounting journal entires

A

Purchase order issued
Dr. Encumbrances
Cr. Budgetary Fund Balance

Purchase order filled
Dr. Budgetary Fund Balance
Cr. Encumbrances

Goods received
Dr. Expenditures
Cr. Vouchers Payable

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12
Q

When there is a difference between the encumbrance amount and the actual amount

A

The encumbered amount is reversed and recorded at the actual amount

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13
Q

Deferred outflows & inflows of resources for government wide statement, proprietary funds, and fiduciary funds

A

[Assets + Deferred outflows] minus [Liabilities + Deferred inflows] equals Net Position

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14
Q

Deferred outflows & inflows of resources for government funds

A

[Current Assets + Deferred outflows] minus [Current liabilities + deferred inflows] equals fund balance

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15
Q

Deferred revenue journal entry

A

When you receive money
Dr. Cash
Cr. Deferred inflow

You the money is recognized
Dr. Deferred inflow
Cr. Revenue

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16
Q

Categories for Statement of Net Position

A

Net investments in capital assets - subtract depreciation and any debt associated with the asset

Restricted

Unrestricted

17
Q

Categories for Fund Balance

A

Nonspendable - not in a spendable form like inventory or contractually has to remain intact

Restricted - by external parties or enabling legislation

Committed - imposed by highest level of government

Assigned - government expresses intent

Unassigned - positive amount for general and negative for every other fund

18
Q

Enterprise Statement of Cash flows sections

A

Operating - excludes interest

Capital & Related Financing - shit for capital and for private sector it would be called investing section

Noncapital Financing - financing activities not related to capital

Investing - investments, interest & dividends. loans made & collected

19
Q

3 Sections of CAFR

A

Introductory
Financial
Statistical

20
Q

Introductory section of CAFR

A

Letter of Transmittal
Organizational Chart
Principal Offers
Other

21
Q

Financial Section of CAFR

A 
Independent Auditor's Report
Management Discussion & Analysis
Basic Financial Statements
RSI
Combining statements & individual fund statements
22
Q

Statistical Section of CAFR

A 
Financial trends
Revenue capacity
Debt capacity
Demographic & economical
Operating information
Other
23
Q

Basic financial statements for Financial section of CAFR

A

Government wide statements
Fund Statements
Notes to the Financial statements

24
Q

Government wide Statements

A

Statement of Net Position
Statement of Activities

Does not include date on fiduciary shit and split into governmental & business activities

25
Q

Fund statements

A

Government Category

  • Balance sheet: 5 categories
  • statement of rev, exp, and changes in fund balance

Proprietary Category

  • Net Position - 3 categories
  • statement of rev, exp, and changes in net position
  • statement of cash flows: 4 categories

Fiduciary Category

  • Statement of net position
  • changes in net position
26
Q

Note about how CAFR and government wide financial statements relate

A

Government wide financial statements are part of the Financial section of CAFR in the basic financial statements along with fund statements

27
Q

Where are component units presented

A

Government wide financial statements in 1 single column

28
Q

If governing body is independently reported and not appointed for component unit shit

A

Not reported because not a component unit

29
Q

Major fund rules

A

Needs to be both 10% or more of total government funds and 5% or more of total governmental and enterprise funds combined

30
Q

Internal service fund and government wide financial statements

A

included in the governmental column not the business

31
Q

Types of interfund transactions

A

Quasi-external: business like transactions between funds

Reimbursements: paying another funds shit

Transfer

Loans

32
Q

Long term liabilities and general fund

A

Do not record long term debt, only the amount due as expenditures and the long term part is recorded in the government wide financial statements

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