Far - Chapter 9

Front 1

What are the program revenue category types for government wide financial statements?

Back 1

SOC
1. Charges for services
2. Operating grants and contributions
3. Capital grants and contributions

Front 2

When does a fund qualify as a major fund?

Back 2

1. 10% of the SEPARATE COLUMNS of revenues, expenses, assets or liabilities of
a) all governmental funds or
b) enterprise funds
AND
2. 5% of revenues, expenses, assets or liabilities of
a) all governemental funds AND B) all enterprise funds

Front 3

In the required supplementary information for government accounting you must show the estimated annual amount to maintain the infrasturcture for how many previous years?

Back 3

5

Front 4

A change from the depreciation method to the modified approach (and vice versa) for infrastructure assets should be classified as a change in
a) accounting estimate
b) accounting principle

Back 4

accounting estimate

Front 5

For government accounting, how many years of presentation for pensions must be shown?

Back 5

6 years

Front 6

In the statement of cash flows for governement accounting, is interest income accounted for as operating or investing activites?

Back 6

Investing

Front 7

How is physical damage to an infrastructure asset recorded?

Back 7

Asset is written down by the cost to repair

Front 8

Governements are encouraged, not required, to capitalize a collection of artwork, when that collection meets what condiotions?

Back 8

1. Held for public exhibition
2. Collection is preserved AND
3) proceeds of sale must be used to acquire more collectios

Front 9

When doing the statement of cash flows for government accounting, which method is permitted
a) direct
b) indirect

Back 9

Direct

Front 10

How are the following accounted for in governemtnal accountg - capital or financing activities?
1) interest expense
2) capital aset purchase

Back 10

1) financing
2) financing

Front 11

What statements focus on fiscal responsibility?

Back 11

Fund financial statements

Front 12

GOVT: What section of the statement of cash flows accounts for each of the following?
1) cash flows associated with equity transactions
2) cash receipts from grants or sibsidies
3) cash received from property taxes
4) cash received from capital grants

Back 12

1. investing
2,3. non-capital financing
4. capital financing

Front 13

Are component units legally separate organizations of the primary governemtn?

Back 13

Yes

Front 14

How do you prepare the fund to government wide reconciliation for th ebalance sheet?

Back 14

GALS BARE
Graspp fund balance
+ assets (non-current)
- Liabilities (non-current)
+ Service (internal) fund net assets

Front 15

Are component units included in govenrment wide financial statements?

Back 15

Yes

Front 16

Where can the reconciliation of the fund financial statements to the governement wide statements appear?

Back 16

On the face of the fund financial statements or in the notes

Front 17

When is the component unit shown in a lended presentation format?

Back 17

1. A board of component unit is the same as the primary government
2. The component unit serves the primary government at least almost exclusively

Front 18

What governemtn statemetns focus on operational accountability?

Back 18

Governmetn wide

Front 19

What statements are in the goverment wide financial statemtns?

Back 19

1. Statement of net assets
2. Statement of activities

Front 20

Is the comprehensive annual financial report required for governemtns?

Back 20

No

Front 21

Are audited basic financial statemtns required for governements?

Back 21

No

Front 22

Is the statistacal section required for governemtns?

Back 22

No

Front 23

iN ORDER FOR A SPECIAL PURPOSE LOCAL GOVERNMENT TO BE CONSIDERED PART OF THE PRIMARY GOVERNMENT IT MUST MEET THIS CRITERIA.

Back 23

SELF
1. SEpearately elected governening body
2. legally separate
3. fiscally independent

Front 24

How do you reconcile the fund income statement to the government wide statemtns?

Back 24

GOES BARE
Graspp - net change in fund balance
- other financing sources
+ expenditure - capital outlay (net of depreciation)
+ service (internal) fund net income

Front 25

Is construction interste capitalized for governemtns?

Back 25

No

Front 26

When can the government use the modified approach to account for infrastructure assets?

Back 26

1. It must be in inventory
2. Provide a summarized condition of them
3. Eachyear, an estimate made of cost to maintain
4. Complete condition assessment every 3 years
5. Reasonably assured the assets are being presented at the condition disclosed

Front 27

The financial reporting entity for governemtns consists of these three areas.

Back 27

1. Primary governemtn
2. Special purpose governmental units
3.component units

Front 28

Explain the financial accountability of speicial purpose governmental units and how it relates to the primary government.

Back 28

they are financially accountable to the primary government

Front 29

Explain how financial accountability of the component unit relates to the prmary governemtn.

Back 29

The elected officials ofthe primary governemtn are financially accountable for the ocmponent unit.

Front 30

Which method is allowed for the statment of cash flows for nfp accountg? Direct or in direct?

Back 30

Both

Front 31

What section does the following go in for the statemtn of cash flows for nfp accoutng?
1. i nvestment in equipment
2. interest income restricted to investment
3. donor imposed restrictions limiting use to purchases of assets or increases to endowmnet
4. receipts of unrestricted resources designated by the board to be used for fixed assets

Back 31

1. investing
2, 3. financing
4. operating

Front 32

NFP
A multi year pledge was recorded in year 1. In year 2, how is the difference in present value accounted for?

Back 32

Considered conribution revenue (not interst income)

Front 33

In NFP, how are multi-year pledges accounted for?

Back 33

Recordced at net prsent value, (future collections are temporarily restricted - time)

Front 34

NFP
What are the most common groups of functional classifications for the statemtn of funcational expenses?

Back 34

1. program support expenses
2. fundraising expenses
3. mangemet and general

Front 35

What is a quasi endowment in a NFP?

Back 35

When the boardpermanentlyt restricts funds.

Front 36

when a nfp has expenses associated with soliciting volunteers how is that accounted for?

Back 36

fundraising expense

Front 37

In order for a nfp to not recognize a donated collection item, what criteria must be met?

Back 37

1. part of a collection
2. preserved
3. proceds from sale buys more collections

Front 38

What financilal statements hould be provided for nfp?

Back 38

1. Statemetn of financial position
2. Statement of activities
3. Statement of cash flows
4. Statement of functional expenses (required for voluntary health and welfare organzations)

Front 39

Are split interst contributions displayed as
1. unrestricted
2. temporarily restricted
3. permanently restricted

Back 39

Temporarily restricted

Front 40

Are split interest contributions measured at
1) book valuie
2) fair market value

Back 40

fmv

Front 41

For a hospital, are the following operating, or non-operating reveue?
1. donated supplies
2. donated services
3. unrestricted grants
4. parking fees

Back 41

1,4. operating
2,3. non-operating

Front 42

Not for profut organizations are divided into these categories.

Back 42

1. health care orgs
2. educational instituions
3. voluntary health and welfare org
4. other private nfp orgs

Front 43

The ability for an nfp to use assets in any way is called ____?

Back 43

variance power

Front 44

nfp
The board restricts funds for a certain puirpose. are these funds considered
1. unrestricted
2. termporarily restricted
3. permanetly restricted

Back 44

unrestricvted

Front 45

What are the 3 major components for the nfp's statemetn of financial position?

Back 45

assets, liabilities, net assets (equity)

Front 46

WHAT ARE THE EXPENSE CATEGORIES IN A NFP'S STATEMETN OF ACTIVITIES.

Back 46

program services, support services, combined costs

Front 47

Non-cash contributions to a nfp are called ______.

Back 47

gifts in-kind

Front 48

nfp
When are contributions of services recognized?

Back 48

SOME
Specialized skills,
otherwise needed by the org
Measurable
Easily (fair value)

Front 49

Are gifts in-kind measured at
a) nbv
b) fmv

Back 49

fmv

Front 50

In nfp accountg, how are net assets classified?

Back 50

unrestricted, temporarily restricted, permanently restricted

Front 51

nfp
What 3 criteria must be met to account for transfers to recipient organizations, as an equity transaction?

Back 51

1. the resournce provider (RP) specifies itself or an affiliate as the beneficiary
2. the rp and the recipient are financially interrelated
3. the rp doesn't expect payment of the transferred assets

Front 52

nfp
Are debt and equity securities measred at
nbv or fmv?

Back 52

fmv

Front 53

FACT - NFP
When the beneficiary is financially interrelated to the recipient of funds, the credit is to "equity transactions".

Back 53

n/a