Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

FAR cpa > Governmental Accounting > Flashcards

Governmental Accounting Flashcards

(50 cards)

Start Studying
1
Q

6 characteristics of effective Gov financial reporting

A 
Timeliness 
Consistency 
Comparability 
Understandability 
Reliability
Relevance (difficult to achieve)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Accounting principles for
Gov
nfp

A 
Government = GASB
NFP = FASB
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Separate fund financial statements should be presented for

A

Governmental and proprietary funds to report additional and detailed information about the primary government

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

The measurement focus for all governmental funds is

A

The flow of current financial resources

Modifies accrual basis is used

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

Primary users for governmental financial statements

A

Citizens/taxpayers, school boards, and investors and creditors. Internal users are not considered primary users.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Inter-period equity

A

Having current year revenues cover current year expenditures so that future taxpayers don’t end up paying for benefits provided to current tax payers

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

Modified accrual accounting

A

Revenues are recorded when they are measurable and available

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

Accrual accounting

A

Revenues are recorded when measurable and earned

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

Proprietary fund accounting

A

Accrual basis is used and measurement focus is the flow of economic resources

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

Government funds are MAC-GRSPP

A 
M - modified 
A - accrual accounting 
C - current financial resource measurement focus 
G- general funds 
R- special Revenue
S- debt Service 
P- capital Projects 
P- permanent
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Proprietary and fiduciary funds have SPACE

SE-PAPI

A

SE- service ; enterprise
PAPI- pension, agency, private, investment
A- accrual accounting
C- carry fixed assets and long term debt
E- economic resources measurement focus

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

General fund

A

Accounts for everything not required to belong in another type of fund. Ordinary operations of a government unit

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

Special revenue fund

A

Account for revenue sources that are restricted or committed to be spent for specific purposes other than debt service or cap projects

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

Capital project funds

A

Funds that are restricted for construction or acquisition of capital facilities

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

Debt service funds

A

Fund restrictive or committed for debt service principal and interest expenditures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Enterprise fund (proprietary)

A

Accounts for business type activities that the public is the primary user on

(Often used for utilities, airports, and transit systems)

Accounts for fixed assets in a manner similar to a for profit organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Internal service funds

A

Business type activities were other government agencies are the primary user

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Fiduciary

A

Means money held for others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Pension trust funds

A

Assets held in trust to provide employee retirement benefits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Private purpose trust funds

A

Assets held in trust to benefit individuals

Not general public use
Statement of cash flows not required

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Investment trust funds

Study These Flashcards
A

Accounts for assets held in trust for other governments

Investment pools

23
Q

Agency funds

Study These Flashcards
A

Collects cash to be held temporarily for an authorized recipient to whom it will be later disbursed

(Ex. Taxes collected for another governmental entity)
No gov monitoring

24
Q

Permanent funds

Study These Flashcards
A

Accounts for endowments (donation of money or land) for which the earnings are restricted to support government programs dedicated for public purpose

25
Q

Budgetary
Activity
Encumbrance

Study These Flashcards
A

B- used to control spendin
A- emphasizes the flow of CURRENT financial resource
E- used to record purchase orders and aid in the control of spending

26
Accrued as receivable and revenue when collected within 60 days of year end (measurable and available)
``` Imposed non-exchange revs Billed/recorded =revenue -real estate taxes (due) -fines and penalties Derived tax revenue Received= revenue -income taxes -sales taxes Earned=revenue -collected in advance -restricted grants (earned when spent) ```
27
Voucher payable is recorded
DR expenditure | CR voucher payable
28
Derived (non exchange) tax revenue
Represents taxes imposed on or derived from exchange transactions such as commercial sales (Sales taxes)
29
JE to record budgeted amounts for estimated revenue and approved expenditures (appropriations)
DR estimated rev control DR budgetary control (neg/deficit) CR appropriations control CR budgetary control (positive/surplus)
30
Expenditure elements belong to which type of classification ?
Object. Expenditures of governmental resources should be classified by object classes- according to the type of items purchased or services obtained. Ex.(salaries and wages)
31
Estimated revenues
Property taxes Licenses And fines And intergovernmental revenues
32
Fixed assets
- not expected to contribute to the generation of revenue - treated as an expenditure. - will reduce the excess of revenue over expenditures.
33
An exchange transaction
A RECIPROCAL transfer in which each party receives and sacrifices something of approximately equal value Bargained value in transaction
34
A non-exchange transaction
Involves giving/ receiving value without receiving/ giving equal value in return. No bargain value or arm’s-length transaction NON-RECIPROCAL
35
Purchase method
- records expenditure when purchased - initially records additions to inventory as an expenditure - then establishes inventory balances and related non-spendable fund balance amounts based on physical count valuations at year-end
36
Consumption method
- record a current asset when purchased. | - record an expenditure as consumed during the period
37
Outstanding encumbrance at year end
Treated as a component of an appropriate classification of fund balance (generally committed or assigned)
38
Closing BAE BAE
Budget is booked, then closed for same amount. Activity is booked and closed for actual amount Encumbrance is booked then reversed for same amount
39
Non spendable
(Inventories) Non spendable fund balances represent resources in a form that can’t be spent or are legally or contractually required to remain whole.
40
Unrestricted | Restricted
U- funds that army restricted or net investment in capital assets R- the restriction needs to be due to an external reason such as creditors or legislation or debt covenants. “City council” would still be considered unrestricted
41
Net investment in capital assets
Balance is equal to capital assets - accumulated depreciation- any debt related to the capital assets
42
Committed
Constrained by the governments highest level of authority.
43
Assigned
Intended to be used for specific purpose doesn’t meet restricted or committed criteria
44
Unassigned
Resources available for any purpose
45
Fund balance | Net position
FB- equity section for governmental fund types NP- equity section for proprietary and fiduciary fund types
46
Purchase order approved
DR encumbrances | CR budgetary control
47
Reciprocal and non reciprocal activity
R- interfund loans / interfund services provided and used NR- interfund transfers/ interfund reimbursements
48
When a capital lease of a governmental unit represents the acquisition of a general fixed asset JE
DR expenditure- cap.lease | CR. other financing source-cap.lease
49
Grants from state government are considered
Revenue of capital projects fund
50
Transfers are considered
Other financing sources | General
51
Order of presentation of line items on a proprietary fund statement of rev,exp, and changes in fund net position
``` I-income N-non-operating income and exp C-capital contributions A-additions to endowments S-special items (unusual or infrequent) E-extraordinary items T- transfers ```

FAR cpa (17 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions