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83 Cards in this Set
- Front
- Back
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What is the balance sheet formula for fund balance?
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current assets - current liabilities
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What is encumbrance accounting used for?
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To record purchase orders
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In governmental accounting, are fixed asset's capital items or expenditures for the fund?
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Expenditures
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What's the balance sheet equivalent for each of the different fund categories?
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1. Governmental: Balance sheet
2. Proprietary: Statement of Net assets 3. Fiduciary: Statement of Fiduciary net Assets |
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What account is credited when the internal service fund receives proceeds from a bond issue.
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Long term bond payable
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When a government elects to establish self-insurance funds, what fund is used?
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Internal service fund
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When is an activity required to be reported as an enterprise fund?
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When anyone of the following is met:
1. The activity is financed with debt that is secured solely by a pledge of the net revenue from fees and charges 2. Laws required that the cost of providing services be received through fees 3. The pricing policies of the activity establish fees designed to recover its costs |
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What fund is shown separately in the ogvertnment wide statemetns?
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enterprise fund
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What funds are not shown in the government wide financial statements?
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PAPI (the fiduciary funds)
Pension trust Agency trust Private purpose trust Investment trust |
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This fund is shown with the governmental funds inthe government wide financial statements.
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Internal service fund
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In the modified accural accounting, when is revenue recognized?
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When measureable and available (collected)
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Major fund reporting requiremetns don't apply to these funds.
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Internal service funds
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Proprietary fund revenue must be distinguished between these two categories.
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Operating and non-operating
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What are the types of proprietary funds?
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SE
Internal service funds Ewnterprise funds |
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In an investment trust, are net assets valued at net book value or fair value?
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fair value
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Using the economic resources measurement focus analyzes net assets and reports them in what vategories?
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restricted, unrestricted and invested in property and equipment net of related debt
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Name the kinds of non-operating revenues for the enterprise fund.
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Shared revenues, and interest and investment income
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These funds are established to finance and account for services/supplies and other bepartments in government or the other governments.
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Internal service funds
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Are long-term liabilities and fixed assets recorded in the internal service funds?
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Yes
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Are budgeting accoutns used in internal service funds?
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No
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Are encumbrances included in internal service funds?
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No
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What three categories of equity are in proprietary fuinds?
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Unrestricted, invested in capital assets net of related debt, restricted for debt service
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besides non-operating revenues, what other revenue services are there for the internal service funds? When is revenuye recognized for them?
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Restricted grant revenues: recognized when monies are spent
Operating revenue: recognized when earned |
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What's the journal entry to record billings rendered to other funds in the internal service fund?
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Ar
--billings to other departments (operating revenue) |
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What's the name of the income statement for governmental funds?
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Statement of revenues, expenditures and changes in fund balance
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In governmental accounting, where are fixed assets and long-term debt reported?
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On the government wide financial statements
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After classifying governmental funds according to the appropriate fund, how can they be further classified?
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1. Functional / program
2. Organizational Unit 3. Activity 4. Character 5. Object classes |
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In an enterprise fund is contributed cpaital shown on the face of the balance sheet?
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No
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Why is bedgetary accounting emphasized for modified accrual accounting?
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In order to control spending
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In modified accrual accounting, what does activity emphasize?
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The flow of current financial resources.
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Explain the difference of how speical assessments due are accounted for when the government is potentially liable and not potentially liable?
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1. Potentially liablie: account for the capital project and debt related transactions throught the governmental proprietary fund
2. Not potentially liable: reported in an egency fund |
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Explain how assets and liabilities are reported for special assessments when the governemtn is potentially and not potentially liable.
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1. Liable: reported in the government wide financial statements
2. Not libale: excluded from the government wide financial statemtnes |
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Are encumbrances used in the debt service fund?
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nO
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Are encumbrances used in the capital projects fund?
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Yes
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Fund financial statements should be separately presented for these three fund categories.
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Governmental funds
Proprietary funds Fiduciary funds |
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Financial activity of primary government is classified in these ways.
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1. Governmental activities
2. Business type activies |
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What happens if there is a balance in the encumbrances account at year end?
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Encumbrances is closed; outstanding amount carried forward as a reserve of fund balance with a corresponding reduction of unreserved fund balance.
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What are the different expenditure categories for the general fund?
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1. General government
2. Public Safety 3. Culture and recreation |
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When do you account for a fund as special revenue?
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If the intent is to receover less than 50% of expenses by a tax on useres.
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What fund do grants go to when
1. monitoring is requried 2. nonmonitoring is required |
1. Special revenue fund
2. Agency trust fund |
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What revenue cateogry do investment earnings go in for the general fund?
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Other revenues
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What is the equivalent of the AICPA for governemtal bodies?
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GFOA
Governmental Finance Officers Association |
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What are the major classifications by character for governmental funds?
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1. Current expenditures
2. Capital outlays 3. Debt servcice 4. Inter-governmental |
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The debt sercvice fund pays off debt of which funds?
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GRaSPP funds
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What bodies extablish governmental accounting pricinples and standars?
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1.GASB
2.GFOA 3. Audit and accounting guides 4. Industry specific literature |
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What are the different claissifications of non-exchange governmental fund revenues?
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1. Derived tax revenues
2. Imposed non-exchange revenues 3. Government mandated non-exchange transactions 4. Voluntary non-exchange transactions |
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What are the methods for expenditure recognition in governmental accountg?
What's the difference between each? |
1. Purchase method (expenditure current asets when purchased; set up as current asset if not consumed)
2. Consumption mtehod (set up as current asset when purchased; expendituyre as consumed) |
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FACT
In a pension trust and investment rreyust, premiums and discounts should not be amortized as a part of investment income. |
n/a
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If the government has liability for special assessments, accounting should be made through what funds?
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Capital projects and debt service funds
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What will the credit entry be for proceeds from long term debt for governmental funds?
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Other financing sources
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Explain how fund accounting is used for governments and not-for-profits?
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Governemtns: used for internal reporting; used for a portion of external reporting
NFP: used for internal reporting |
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What are foundations?
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Private trusts and foundations that are organized for a specific benefit to society
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Are premiums and discounts amortized in the debt service fund?
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No
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What is the formula for net assets for proprietary funds?
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All assets - all liabilities
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What entity prescribes Governemtn Auditing Standards?
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The GAO
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FACT - Government accounting
Non-major funds are displayed in aggregate |
n/a
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The life of the capital projects fund is limited to a construction period of how many years?
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1-3 years
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What category of funds are excluded from the government wide presentation?
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Fiduciary funds
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In governmental funds, when are real estate taxes due recognized?
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When billed
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Of the different fund categories, which use modified or full accrual accounting?
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1. Governmental: modified
2: Proprietary and fiduciary: full |
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What are the types of fiduciary funds?
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PAPI
Penstion trust funds, agency trust funds, private purpose trust funds, investment trust funds |
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Name the different types of governmental funds.
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GRASPP
General fund, special revenue funds, debt service funds, capital project funds, permanent funds |
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When are incomet taxes recognized in governmements?
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When received
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When are real estate taxes paid in advance recognized in governments?
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Earned
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What are the different kinds of revenues for the general fund?
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Taxes, public safety and regulation, intergovernmental, charges for services and other revenues
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When are enterprise funds required?
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When one is met:
1. The activty of the fund is financed by debt secured by a pledge of fee revenue 2. Laws require collection fees adequate to recover cover costs 3. Pricing polocies are established to produce fees and that recover costs. |
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What bodies establish accounting principles and standards for Not for Profit organizations?
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1. FASB
2. Audit and accounting guide 3. Industry specific literature |
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This entity governs audits under the single audit act.
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GAO
Government Accountability Office |
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When is revenue considered available in modified accrual accounting.
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The collection period doesn't exceed 60 days
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What's the income statement called in proprietary funds?
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Statement of Rvevenues, Expeneses and Changes in Fund Net Assets
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What's the income statement called in fiduciary funds?
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Statement of Changes in Fiduciary net Assets
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What is a "special item" in an enterprise fund?
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An item that is either unusual or infrequent
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What's the order of line item presentation for proprietary funds in the statement of revenues, expenses and changes in fund net assets?
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INCASET
Income (operating) Non-operating income and expenses Capital contributions Additions to Endowments Special Items Extraordinary items Transfers |
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What are the cost components of the municipal solid waste landfill closure?
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1. Cost of equipment/facilities expected to be installed during the post closure period
2. Cost of a gas monitoring and collection system 3. Cost of capping |
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What are the 4 sections of the statement of cash flows of an enterprise fund?
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Cash flow from
1. Operating activities 2. Noncapital financing activies 3. Capital financing activieis 4. Investing activities |
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In the reconciliation in the statement of cash flows for an enterprise fund, what is reconciled?
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Operating income to net cash provided by operating activities
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Is a statement of cash flows required for fiduciary funds?
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No
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what account is credited when recording the journal entry for a receipt of money from employee/employer to a pension funds?
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Additions: emplyee/employer contribution - restricted
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How are revenues and expeneses recognized in an agency fund?
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Not recognized
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what governmental funds don't use encumbrances?
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Debt service fund and permanent fund
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How often are budgetary accounts posted?
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2x /year
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Is a statemetn of cash flows required for a private purpose trust?
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No
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How are capital gains/losses handled in the private purpose trust?
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Adjustments to fund principal (not income)
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