Non-Spendable Fund Balance CORRECT ANSWER Assets not in spendable form-Inventories and prepaid items, principal of a permanent fund which may not be spent, and assets held for sale and long-term receivables. Examples: Supplies, inventory, membership fees
Restricted Fund Balance CORRECT ANSWER Su...
CGFM EXAM 2 Study questions with correct answers
Non-Spendable Fund Balance CORRECT ANSWER Assets not in spendable form-Inventories and prepaid items, principal of a permanent fund which may not be spent, and assets held for sale
and long-term receivables. Examples: Supplies, inventory, membership fees
Restricted Fund Balance CORRECT ANSWER Subject to constraints imposed by external parties or law. Debt covenants (such as a requirement for a sinking fund) or constraints imposed by legislation or federal and state agencies, creditors, contributors or granting agencies
Three Categories of net position section of the government-wide Statement of Net Position CORRECT ANSWER Restricted, Committed & Assigned
Committed Fund Balance CORRECT ANSWER Governing body formally committed net resources to specific activities. Contractual obligations outstanding. Board approval of large construction contracts would typically represent commitment of the funds.
Assigned Fund Balance CORRECT ANSWER Residual balances in funds other than the General
Fund or in the general fund that are intended for identified purposes
Difference between Committed and Restricted CORRECT ANSWER Committed constraint is imposed by a government upon itself
GASB standards state that rainy day funds may be classified as committed only under specific circumstances which are CORRECT ANSWER they are created by a resolution or ordinance that
identifies the specific circumstances under which the resources may be expended
Other financing sources consist of CORRECT ANSWER transfers in from other funds and proceeds of long-term borrowing
Fund Revenues consist of CORRECT ANSWER taxes, charges for services, amounts provided by other entities such as state or federal government Other fund uses CORRECT ANSWER Transfers of cash out of one fund to other funds
To recognize revenue from the General Fund transferred to a debt service fund to record payments of interest and principal on general obligation debt CORRECT ANSWER Credit General Fund Tax Revenue
Debit General Fund Other Financing Uses-Transfers Out
Debit Debt Service Fund Other Financing Sources - Transfer In
Credit Debt Service Fund Expenditures
Fund Budgetary Accounts CORRECT ANSWER Estimated Revenues, Appropriations, Estimated Other Financing Sources, Estimated Other Financing Uses, Encumbrances
Fund Activity Accounts CORRECT ANSWER Revenues, Expenditures, Other Financing Sources, Other Financing Uses
Fund Revenues CORRECT ANSWER Tax Revenues, Charges for Services
Fund Expenditures CORRECT ANSWER Current, Capital Outlay, Debt Service
Other Financing Sources CORRECT ANSWER Transfers In, Debt Proceeds
Other Financing Uses CORRECT ANSWER Transfers Out
When a PO or Contract is issued as authorized by an appropriation the government recognizes this commitment as CORRECT ANSWER An encumbrance (not yet a liability)
JE for City Council approves fiscal year budget for General Fund
JE for Financial Statement Accounts CORRECT ANSWER DR Estimated Revenues
CR Appropriations Budgetary Fund Balance is a CR
NONE
JE for City Departments issue PO for goods and services
JE for Financial Statement Accounts CORRECT ANSWER DR Encumbrances Control
CR Budgetary Fund Balance Reserve for Encumbrances (To Establish the Encumbrance)
NONE
JE for Goods and Services are received and invoices are presented for payment
JE for Financial Statement Accounts CORRECT ANSWER DR Budgetary Fund Balance Reserve for Encumbrances
CR Encumbrances Control DR Expenditures (Current)
CR Accounts Payable (to Record the Liability)
Common form of nonexchange transactions CORRECT ANSWER tax revenue and intergovernmental grants
Nonexchange transaction eligibility requrements CORRECT ANSWER Characteristics/Time/Reimbursement/Contingencies-Matching funds
Imposed nonexchange transactions CORRECT ANSWER taxes and other assessments imposed by governemnts not derived from underlying transactions. (Property Tax, special assessments, fines and forfeits)
Deferred taxes are reported as what on the Balance Sheet CORRECT ANSWER Reported as deferred inflows of resources
What are deferred taxes CORRECT ANSWER Taxes expected to be received more than 60 days
after fiscal year end.
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