acct test 3b

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acct test 3b
2011-05-28 22:20:30
acct test

acct test 3b
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  1. name the fiduciary funds
    • agency fund
    • private purpose trust fund
    • investment trust fund
    • pension trust fund or other employee benefit trust fund
  2. purpose of agency fund
    accounts for assets that are held for individuals, organizations or other governments - indefinate term while assets are collected or held
  3. purpose of private purpose trust fund
    trust fund that accounts for assets contributed to the government that stipulates that the income, principal or both be used to benefit individuals, organizations or other governments
  4. purpose of investment trust fund
    accounts for assets held & invested on behalf of other governments in multi-govt investment pool in which reporting government is the sponser
  5. purpose of pension trust fund
    accounts for assets held & invested on behalf of government employee pension or other benefit plan in which reporting government acts as trustee
  6. how are fiduciary funds reported in financial statements
    • by themselves not on government wide statements
    • use the economic & accrual basis of accounting
    • report using the statement of ficuciary net assets & statement of change of fiduciary net assets
  7. how are transactions reported in a agency fund
    • assets are offset by liabilities
    • assets recognized when govt becomes agent
    • tax levies
  8. what is the basis of accounting for fiducary funds
    accrual metohd of accounting on economic basis
  9. what is an Escheat property
    state govt obtains property with no legal claimant or heir; was abondoned or legal owners are un findable and turned over to state govt until legal owner can be found
  10. accounting basis of government wide financial statements
    accrual accounting method with economic resources focus
  11. what adjustments must be made to fund financial statments to prepare government wide financial statements
    • move expenditures for capital outlays to capital asset
    • enter depreciation expense & accumulated depreciation
    • move proceeds sale of capital assets to capital assets net & gain/loss for assets
    • move long term other financing sources to bonds payable & premium on bonds amortization of bond premium and move expenditure to bonds payable
    • recognize revenues when not recognized rules
    • recognize compensating abences
  12. alternate methods for depreciating infrastructure
    • may use straight line, sum of the digits or declining balance
    • useful life may be estimated from general guidlines from professional or industry orgs, info for comparable assets or internal info
  13. how is the internal service fund activity reported in governemnt wide financial statements
    with the governmental funds
  14. what types of not for profit (NFP) organizations require a statment of functional expenses
    required for voluntary health & welfare organizations
  15. how does NFP record donor contributions with expresses purposes, restricitions or conditions
    the contributions are recorded as temporarily restricted net assets until such time as they purpose, restrictions or conditions are met
  16. what 3 assets/net asset classifications of an NFP
    • unrestircted
    • temporarily restricted
    • permanently restricted
  17. what performance measures a NFP are concerned with
    ratio of program service expense to total expense also called program expense ratio
  18. structure & parts of NFP financial statements
    same as business except has net assets instead of equity
  19. when unconditional pledges may be recognized as revenue
    when the pledge is made at present value of the pledge net of an allowance for estimated uncollectibles
  20. when conditional pledges may be recognized as revenue
    Conditional pledges may be recognized as revenue when the condition of the pledge has been completed
  21. when contributions with conditions may be recognized as revenues
    contributions can recocognized as revenues when pledged as temporarily revenues and then unrestricted when the condition for the revenue has been met