question Flashcards
governmental not-for-profit entity, is preparing its year-end financial statements. Which of the following statements is required
statement of financial position (like a balance sheet), statement of activities, statement of cash flows, and for voluntary health and welfare entities, a statement of functional expenses.
Where in its financial statements should a company disclose information about its concentration of credit risks?
The notes to the financial statements
bond, interest payable
the stated interest rate x face amount X time
Reciprocal interfund, goverment
activities that affect two funds resulting from loans or services provided and received.
program revenue. government
Program revenues are derived directly from the program itself or from parties outside the reporting government’s taxpayers or citizenry as a whole; they reduce the net cost of the function to be financed from the government’s general revenues
What is the purpose of information presented in notes to the financial statements?
Information disclosed in notes…is essential…and…an integral part of the financial statements prepared in accordance with generally accepted accounting principles.
single-step income statement
presents all revenue and gains in the upper part of the statement. Purchase discounts are shown as deductions in the expense section. Recovery of accounts written off has no effect on the income statement since cash is increased and allowance for doubtful accounts is decreased.
rate of return on assets
Net income / Average assets
comparability of governmental financial reports
Comparability implies that differences between financial reports should be due to substantive differences in the underlying transactions or the governmental structure rather than due to selection of different alternatives in accounting procedures or practices
financial categories are used in a nongovernmental not-for-profit entity’s statement of financial position
Assets, liabilities, and net assets
Subsequent events take place:
Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued or are available to be issued.
