'Accountability and Reporting' 'Identifying and displaying the accountability objectives of governmental and not-for' 'profit organizations is integral to this type of financial reporting and related accounting. Resources' 'Governmental entities often derive their revenues from taxes or answer to public' 'authorities while not-for-profit entities often derive their income from contributions or fees and are not taxable. These publicly-funded entities contrast with commercial entities in they usually derive their income from sales or fees and are generally taxable.' Dual Objectives' 'In accounting for public funds, both governments and not-for-profit organizations seek to demonstrate their operational accountability for the entity taken as a' 'whole and their fiscal accountability for specific funding.' GASB Statements and Interpretations (most authoritative - Category A) b.
March 2011 - last edited March 2011 Re: Invoices with Retention Amount Then do as I said and put the minus 5% to an income account called retention money, (all on the same invoice, so net figure due is 95%) and then go and do up the retention invoice now, instead of waiting for the payment to come in. I recently purchased my first MAC with Excel for Mac 2008. I am unable to open any files created in it on my PC which has Excel 2003. Apple is of no help. They had assured me of compatibility at purchase citing the new open format. The MAC Excel 08 file won't open on the MAC on which is was created with their Numbers program either.
GASB Technical Bulletins, AICPA Industry Audit Guides, and AICPA Statements of Position (Category BJ c. AICPA Practice Bulletins (Category CJ d. GASB Implementation Guides (least authoritative - Category DJ 2. The Governmental Finance Officers Association (GFOA), which is the professional trade organization for governmental officers (i.e., similar to the AICPA for public accountants), provides optional reporting guidance. Agency Trust funds account for resources in the temporary custody of a governmental unit (e.g., taxes collected for another governmental entity). Private purpose trust funds are the designated funds for all other trust fund arrangements under which principal and income are for the benefit of specific individuals, private organizations, or other governments. Often, the government will need to record escheat property (i.e., property that has been forfeited as a result of the passage of time or process of law) in a private purpose trust fund.
Investment Trust funds-account for external investment pools. Shared Revenues (non-operating revenue) Shared revenues are revenues (e.g., from gasoline or sales taxes) collected by one government (e.g., state) and shared on a predeterm1ned basis with another (e.g., local) government.
They are non-operating revenues of the local government. Interest and Investment Income Transfers in (e.g., from the general fund) are other financial sources that will affect the results of operations. The accounting tor revenues is the same as in commercial (GAAP) accounting. Benefits to be included, based on the actuarial present value of total projected benefits.
Actuarial assumptions. Economic assumptions, which establish the discount rate and the projected salary increase assumption. Actuarial cost method.
Actuarial value of assets and market-related values (basically same as fair value, but without short-term fluctuations). Annual required contributions, which include employer's normal costs and a provision that amortizes the unfunded actuarial accrued liability. Contribution deficiencies or excess contributions. The 2011 general fund budget for Blake County included $50,000 budgeted for new uniforms. At 12/1/2011, the following account balances pertain to fire personnel uniforms: Appropriations $50,000 Encumbrances 6,000 Expenditures 40,000 Vouchers Payable 3,000 Fire Marshall Bob has asked you if he can purchase any more uniforms under this year's budget.
You review the information related to the uniforms budget and report the status to the Fire Marshall by entering the amount and whether it is available or overspent in the appropriate cells. The statement of cash flows for an Enterprise Fund has four sections: (1) cash flows from operating activities, (2) cash flows from noncapital financing activities, (3) cash flows from capital and related financing activities, and (4) cash flows from investing activities. Both capital contributed by subdividers, $900,000, and proceeds from the sale of revenue bonds, $4,500,000, are considered cash flows from capital and related financing activities, therefore $5,400,000 is the correct answer. The cash received from customer households, $2,700,000, is classified as cash flows from operating activities. #34 requires that Internal Service Funds be included in the Governmental Activities totals on the Government-Wide Statements since Internal Service Funds supply goods or services only to the government entity. Therefore, the total fund balance for the Governmental Funds in the fund-based statements ($25,000) must be increased by the Net Assets of the motor pool ($9,000) when the preparing the Governmental Activities column of the Government-Wide Statement of Net Assets ($25,000 + 9,000 = $34,000). Fiduciary Funds are not included in any part of the Government-Wide statements.
This answer is correct because the General Fund normally records the purchase of supplies. The supplies must be reported on the General Fund's balance sheet, even though they do not represent current financial resources.
In addition, at year end, a portion of the fund balance must be reserved for the inventory amount because that amount of resources is not appropriable for future expenditures. This answer is incorrect because an Internal Service Fund, a Proprietary Fund, commonly has inventory; however, the inventory shows up as a Current Asset in its balance sheet.
This type of fund will never have a fund balance; therefore, it would never have fund balance reserved for inventory of supplies. The City of Minton recorded the following transactions in its Special Revenue Fund:. Transfer from the General Fund of $400,000 to help finance a fire safety improvement project.
Transfer of $5,000 from a Capital Projects Fund to pay for office supplies, which it acquired from the Special Revenue Fund. Federal grant proceeds of $300,000, which can only be used to pay for salary increases for public safety workers Which of the following is correct regarding the recognition of Revenue and Other Financing Source in the Special Revenue Fund? Excel City received a donation of $400,000.
The donor stipulated that the money be permanently invested with the investment proceeds being used to provide funding for the community swimming pools. Which of the following best describes the reporting options for this transaction? The city should record $400,000 as a capital contribution in a Permanent Fund.
The city should record $400,000 as revenue in a Permanent Fund. The city should record $400,000 as another financing source in a Permanent Fund. The city should record $400,000 as revenue in the General Fund. Permanent Funds are used to account for resources held in trust by a government for the benefit of the government or its citizenry as a whole with the requirement that the principal of the trust be maintained intact. Income generated from the property would be reported in a Special Revenue Fund, if it is restricted for some particular purpose, or in the General Fund. The Private-Purpose Trust Fund is used when the government acts in a fiduciary capacity for others, which is not the case here.
Agency Funds are clearinghouse funds and are not used to account for assets maintained intact as in this case. Under the modified accrual basis of accounting, the purchase of fixed assets are classified as Capital Expenditures and is one of the expenditure types included in determining the excess (deficiency) of revenues over expenditures.
The other three answers are items that appear in different sections of the Statement of Revenues, Expenditures, and Changes in Fund Balance. The payment to a debt service (i.e., a transfer out) is in the Other Financing Sources and Uses section of the statement. Special items include proceeds from the sale of capital assets, which appear below the section for Other Financing Sources and Uses of the statement. (1) Fund Balance-assigned 30,000 Encumbrances (control) 30,000 (2) Expenditures (control) 30500 Vouchers Payable 30500 (3) Equipment 30,500 Vouchers Payable 30,500 Fund balance - Assigned - Even though the invoice exceeded the purchase order amount, the original entry for the encumbrance is reversed at the estimated (purchase order) amount. Expenditures (Control) - Under the modified accrual basis of accounting equipment purchases represent a use of current financial resources and are recorded as expenditures. Encumbrances (Control) - Even though the invoice exceeded the purchase order amount, the original entry for the encumbrance is reversed at the estimated (purchase order) amount. Rock County has acquired equipment through a noncancelable lease-purchase agreement dated December 31, 2005.
This agreement requires no down payment and the following minimum lease payments: December 31 Principal Interest Total 2006 $50,000 $15,000 $65,000 If the equipment is used in internal service fund operations and the lease payments are financed with internal service fund revenues, what account or accounts should be debited in the internal service fund for the December 31, 2006 lease payment of $65,000? Agency Funds are used to account for assets received on behalf of and paid to other funds, individuals, or organizations. The capital grant described in this question is an example of a pure pass-through grant in which Harland County acts as a conduit to distribute the funds to the five subrecipient municipalities. Hartland County will not record any revenues or expenditures related to the grant and will record a receivable and payable in the Agency Fund that acts as a clearinghouse for the funds. The City of New Hope Rotary Club, a private, not-for-profit organization, recently ended a fund drive that raised $500,000 to be used as a scholarship fund. The $500,000 is to be used to create an endowment that will be invested and retained in perpetuity and the earnings used to provide college scholarships to outstanding local high school graduates selected by the Rotary Club.
The City has agreed to manage the investment and disbursement of these monies on behalf of the Rotary Club. The City should account for the $500,000 corpus of the endowment in a(n): A. Private-Purpose Trust Fund. Permanent Fund.
Special Revenue Fund. Maple Church has cash available for investments in several different accounting funds. Maple's policy is to maximize its financial resources. How may Maple pool its investments? Maple may not pool its investments.
Maple may pool all investments, but it must equitably allocate realized and unrealized gains and losses among participating funds. Maple may pool only unrestricted investments, but it must equitably allocate realized and unrealized gains and losses among participating funds.
Maple may pool only restricted investments, but it must equitably allocate realized and unrealized gains and losses among participating funds. The Morgan City Independent School District (MCISD) manages 14 elementary and secondary schools serving Morgan City and some surrounding areas from Grove County. MCISD is a legally separate entity governed by a nine-member school board, which is independently elected. The district is fiscally dependent upon the city. In Morgan City's financial statements, the MCISD should be reported as: A.
A component unit using blended presentation. A component unit using discrete presentation.
A related organization, which is disclosed in the notes only. An independent entity, which is not included in Morgan City's financial statements. The Metro Transportation Authority is governed by a seven-member board.
Four of the board members are appointed by the town of Metro and the remaining three are appointed by the governing board of Metro County. Neither the town nor the county share in any profits, nor are they required to fund any deficits, of the Authority. The town, however, does approve the Authority's proposed budget. The county may make budgetary recommendations to the Authority, but they are not required to approve the proposed budget. The Authority should be reported as: A.
A jointly governed organization by both the town and the county. Discrete component units of both the town and the county. A blended component unit of the town. A discretely presented component unit of the town. A Capital Projects Fund has outstanding encumbrances of $250,000 as of the end of the fiscal year.
Assume that all resources in the Capital Projects Fund are considered to be committed due to the constraints established by the enabling legislation of the governing body of the government. How should the encumbrances be reported in the year-end external financial statements? As a specific identifiable component of the restricted fund balance. As a specific identifiable component of the committed fund balance.
As a specific identifiable component of the Assigned Fund balance. The encumbrances would only be reported in the note disclosure.
Only the General Fund can report a positive amount in Unassigned Fund Balance. In all other Governmental Fund types (including a Special Revenue Fund), if expenditures exceed amounts restricted, committed, or assigned, it may be necessary to report a negative Unassigned Fund Balance. Should that occur, the Assigned Fund Balance is reduced to eliminate the deficit.
If a deficit remains after eliminating Assigned Fund Balance, the negative residual should be classified Unassigned Fund Balance. On March 2, 2005, Finch City issued 10-year general obligation bonds at face amount, with interest payable March 1 and September 1. The proceeds were to be used to finance the construction of a civic center over the period April 1, 2005, to March 31, 2006. During the fiscal year ended June 30, 2005, no resources had been provided to the Debt Service Fund for the payment of principal and interest.
The liability for the general obligation bonds should be recorded in the: A. General Fund. Capital Projects Fund. General long-term debt account group. Debt Service Fun. General long-term debt account group.
The general long-term debt account group is used to account for all unmatured long-term indebtedness of the government, except for that debt belonging to Proprietary and similar Trust Funds. The liability for the general obligation bonds should be recorded in this account group.This answer is incorrect because a Capital Projects Fund is used to account for financial resources to be used for the construction or acquisition of capital assets, except for those to be financed by Proprietary Funds or Trust funds. The proceeds from the issuance of the bonds should be recorded in a Capital Projects Fund, but the liability for the bonds should not be recorded in a Capital Projects Fund.
A decrease in Expenditures. Interfund Reimbursements are Nonreciprocal Transactions in which a government determines that an expenditure or expense was initially recorded in one fund and should be accounted for and reported as an expenditure or expense in another fund. In this example, the General Fund paid and recorded as an expenditure all of an invoice that included a portion that pertained to another fund. The reimbursement from the Enterprise Fund should be recorded as a decrease in expenditures in the General Fund, to offset that portion previously recognized as an expenditure in the General Fund that was attributable to the Enterprise Fund. The Enterprise Fund should record an increase in expense at the time the reimbursement is made.
The General Fund, the Debt Service Fund, the General Capital Assets accounts, and the General Long-Term Liabilities accounts. The General Fund will account for the copier equipment as an expenditure, the Debt Service Fund will account for current year capital lease payments, the General Capital Asset accounts (not part of any fund) will account for the full cost of the copier equipment, and General Long-Term Liabilities accounts will (not part of any fund) will account for the unmatured capital lease liability. Restricted as to their use by the donor, grantor, or other source of the resources In government hospitals and non-government hospitals restricted funds or assets, both permanent and temporary, can only be restricted as to use by the donor, grantor, or other source of the resources. The restricted assets are presented differently on the year-end balance sheet of a government hospital and a non-government hospital, as a result of FASB Statement No.
For a government hospital, the type of restriction determines the fund in which the restricted assets will be reported. The format of the non-government hospital's balance is specified by FASB Statement No. This statement requires that the information be presented on an entity-wide basis, not an individual fund approach.
On the face of the statement, assets are presented in three broad categories: 1. Unrestricted, 2. Temporarily restricted, and 3.
Permanently restricted. $530,000 Total revenues, gains, and other support on the Statement of Operations includes all Operating Revenues reported under Unrestricted Net Assets in the Statement of Activities. This amount includes Net Patient Service Revenues (net of Charity Care Revenues) of $400,000, Other Revenue (often called Other Operating Revenue) of $80,000 and the portion of Temporarily Restricted Net Assets used for operations of $50,000 during the current period for a total of $530,000. Bad debt expense is not netted with Net Patient Service Revenue, but is separately deducted with the other operating expenses. (1) Yes (2) NO Government hospitals classify revenues into three broad categories: Patient Service Revenues, Premium Fees, and Other Revenues. The Other Revenues category includes revenues generated by ongoing activities of the hospital other than patient care. Revenues from educational programs are included in this category.
Government hospitals record unrestricted gifts as Nonoperating Gains in the General Fund. If we assume that the hospital is not a government entity, then it must conform with FASB Statement No. The revenues from educational programs would still be classified as Other Operating Revenues.
The unrestricted gifts would be classified as Revenues from Contributions. Operating Revenues. An appropriation from the state is a Nonoperating Revenue. Operating Revenues would include items such student tuition, grants and contracts, and auxiliary enterprise (bookstore, dorms).
Nonoperating Revenues. A state university is an example of a special purpose government. Since it is engaged only in business-type activities, it should report the financial statements required for Enterprise Funds.
In that case, state appropriations to the university are Nonoperating Revenues.
'Accountability and Reporting' 'Identifying and displaying the accountability objectives of governmental and not-for' 'profit organizations is integral to this type of financial reporting and related accounting. Resources' 'Governmental entities often derive their revenues from taxes or answer to public' 'authorities while not-for-profit entities often derive their income from contributions or fees and are not taxable. These publicly-funded entities contrast with commercial entities in they usually derive their income from sales or fees and are generally taxable.' Dual Objectives' 'In accounting for public funds, both governments and not-for-profit organizations seek to demonstrate their operational accountability for the entity taken as a' 'whole and their fiscal accountability for specific funding.' GASB Statements and Interpretations (most authoritative - Category A) b.
GASB Technical Bulletins, AICPA Industry Audit Guides, and AICPA Statements of Position (Category BJ c. AICPA Practice Bulletins (Category CJ d. GASB Implementation Guides (least authoritative - Category DJ 2. The Governmental Finance Officers Association (GFOA), which is the professional trade organization for governmental officers (i.e., similar to the AICPA for public accountants), provides optional reporting guidance. Agency Trust funds account for resources in the temporary custody of a governmental unit (e.g., taxes collected for another governmental entity).
Private purpose trust funds are the designated funds for all other trust fund arrangements under which principal and income are for the benefit of specific individuals, private organizations, or other governments. Often, the government will need to record escheat property (i.e., property that has been forfeited as a result of the passage of time or process of law) in a private purpose trust fund. Investment Trust funds-account for external investment pools. Shared Revenues (non-operating revenue) Shared revenues are revenues (e.g., from gasoline or sales taxes) collected by one government (e.g., state) and shared on a predeterm1ned basis with another (e.g., local) government. They are non-operating revenues of the local government. Interest and Investment Income Transfers in (e.g., from the general fund) are other financial sources that will affect the results of operations. The accounting tor revenues is the same as in commercial (GAAP) accounting.
Benefits to be included, based on the actuarial present value of total projected benefits. Actuarial assumptions. Economic assumptions, which establish the discount rate and the projected salary increase assumption. Actuarial cost method.
Actuarial value of assets and market-related values (basically same as fair value, but without short-term fluctuations). Annual required contributions, which include employer's normal costs and a provision that amortizes the unfunded actuarial accrued liability. Contribution deficiencies or excess contributions. The 2011 general fund budget for Blake County included $50,000 budgeted for new uniforms.
At 12/1/2011, the following account balances pertain to fire personnel uniforms: Appropriations $50,000 Encumbrances 6,000 Expenditures 40,000 Vouchers Payable 3,000 Fire Marshall Bob has asked you if he can purchase any more uniforms under this year's budget. You review the information related to the uniforms budget and report the status to the Fire Marshall by entering the amount and whether it is available or overspent in the appropriate cells. The statement of cash flows for an Enterprise Fund has four sections: (1) cash flows from operating activities, (2) cash flows from noncapital financing activities, (3) cash flows from capital and related financing activities, and (4) cash flows from investing activities. Both capital contributed by subdividers, $900,000, and proceeds from the sale of revenue bonds, $4,500,000, are considered cash flows from capital and related financing activities, therefore $5,400,000 is the correct answer.
The cash received from customer households, $2,700,000, is classified as cash flows from operating activities. #34 requires that Internal Service Funds be included in the Governmental Activities totals on the Government-Wide Statements since Internal Service Funds supply goods or services only to the government entity. Therefore, the total fund balance for the Governmental Funds in the fund-based statements ($25,000) must be increased by the Net Assets of the motor pool ($9,000) when the preparing the Governmental Activities column of the Government-Wide Statement of Net Assets ($25,000 + 9,000 = $34,000). Fiduciary Funds are not included in any part of the Government-Wide statements. This answer is correct because the General Fund normally records the purchase of supplies. The supplies must be reported on the General Fund's balance sheet, even though they do not represent current financial resources.
In addition, at year end, a portion of the fund balance must be reserved for the inventory amount because that amount of resources is not appropriable for future expenditures. This answer is incorrect because an Internal Service Fund, a Proprietary Fund, commonly has inventory; however, the inventory shows up as a Current Asset in its balance sheet. This type of fund will never have a fund balance; therefore, it would never have fund balance reserved for inventory of supplies. The City of Minton recorded the following transactions in its Special Revenue Fund:. Transfer from the General Fund of $400,000 to help finance a fire safety improvement project. Transfer of $5,000 from a Capital Projects Fund to pay for office supplies, which it acquired from the Special Revenue Fund. Federal grant proceeds of $300,000, which can only be used to pay for salary increases for public safety workers Which of the following is correct regarding the recognition of Revenue and Other Financing Source in the Special Revenue Fund?
Excel City received a donation of $400,000. The donor stipulated that the money be permanently invested with the investment proceeds being used to provide funding for the community swimming pools. Which of the following best describes the reporting options for this transaction?
The city should record $400,000 as a capital contribution in a Permanent Fund. The city should record $400,000 as revenue in a Permanent Fund. The city should record $400,000 as another financing source in a Permanent Fund.
The city should record $400,000 as revenue in the General Fund. Permanent Funds are used to account for resources held in trust by a government for the benefit of the government or its citizenry as a whole with the requirement that the principal of the trust be maintained intact.
Income generated from the property would be reported in a Special Revenue Fund, if it is restricted for some particular purpose, or in the General Fund. The Private-Purpose Trust Fund is used when the government acts in a fiduciary capacity for others, which is not the case here. Agency Funds are clearinghouse funds and are not used to account for assets maintained intact as in this case. Under the modified accrual basis of accounting, the purchase of fixed assets are classified as Capital Expenditures and is one of the expenditure types included in determining the excess (deficiency) of revenues over expenditures. The other three answers are items that appear in different sections of the Statement of Revenues, Expenditures, and Changes in Fund Balance. The payment to a debt service (i.e., a transfer out) is in the Other Financing Sources and Uses section of the statement. Special items include proceeds from the sale of capital assets, which appear below the section for Other Financing Sources and Uses of the statement.
(1) Fund Balance-assigned 30,000 Encumbrances (control) 30,000 (2) Expenditures (control) 30500 Vouchers Payable 30500 (3) Equipment 30,500 Vouchers Payable 30,500 Fund balance - Assigned - Even though the invoice exceeded the purchase order amount, the original entry for the encumbrance is reversed at the estimated (purchase order) amount. Expenditures (Control) - Under the modified accrual basis of accounting equipment purchases represent a use of current financial resources and are recorded as expenditures. Encumbrances (Control) - Even though the invoice exceeded the purchase order amount, the original entry for the encumbrance is reversed at the estimated (purchase order) amount. Rock County has acquired equipment through a noncancelable lease-purchase agreement dated December 31, 2005.
This agreement requires no down payment and the following minimum lease payments: December 31 Principal Interest Total 2006 $50,000 $15,000 $65,000 If the equipment is used in internal service fund operations and the lease payments are financed with internal service fund revenues, what account or accounts should be debited in the internal service fund for the December 31, 2006 lease payment of $65,000? Agency Funds are used to account for assets received on behalf of and paid to other funds, individuals, or organizations. The capital grant described in this question is an example of a pure pass-through grant in which Harland County acts as a conduit to distribute the funds to the five subrecipient municipalities.
Hartland County will not record any revenues or expenditures related to the grant and will record a receivable and payable in the Agency Fund that acts as a clearinghouse for the funds. The City of New Hope Rotary Club, a private, not-for-profit organization, recently ended a fund drive that raised $500,000 to be used as a scholarship fund. The $500,000 is to be used to create an endowment that will be invested and retained in perpetuity and the earnings used to provide college scholarships to outstanding local high school graduates selected by the Rotary Club. The City has agreed to manage the investment and disbursement of these monies on behalf of the Rotary Club. The City should account for the $500,000 corpus of the endowment in a(n): A.
Private-Purpose Trust Fund. Permanent Fund. Special Revenue Fund.
Maple Church has cash available for investments in several different accounting funds. Maple's policy is to maximize its financial resources. How may Maple pool its investments?
Maple may not pool its investments. Maple may pool all investments, but it must equitably allocate realized and unrealized gains and losses among participating funds. Maple may pool only unrestricted investments, but it must equitably allocate realized and unrealized gains and losses among participating funds. Maple may pool only restricted investments, but it must equitably allocate realized and unrealized gains and losses among participating funds.
The Morgan City Independent School District (MCISD) manages 14 elementary and secondary schools serving Morgan City and some surrounding areas from Grove County. MCISD is a legally separate entity governed by a nine-member school board, which is independently elected.
The district is fiscally dependent upon the city. In Morgan City's financial statements, the MCISD should be reported as: A.
A component unit using blended presentation. A component unit using discrete presentation. A related organization, which is disclosed in the notes only. An independent entity, which is not included in Morgan City's financial statements.
The Metro Transportation Authority is governed by a seven-member board. Four of the board members are appointed by the town of Metro and the remaining three are appointed by the governing board of Metro County. Neither the town nor the county share in any profits, nor are they required to fund any deficits, of the Authority. The town, however, does approve the Authority's proposed budget. The county may make budgetary recommendations to the Authority, but they are not required to approve the proposed budget.
The Authority should be reported as: A. A jointly governed organization by both the town and the county. Discrete component units of both the town and the county.
A blended component unit of the town. A discretely presented component unit of the town. A Capital Projects Fund has outstanding encumbrances of $250,000 as of the end of the fiscal year. Assume that all resources in the Capital Projects Fund are considered to be committed due to the constraints established by the enabling legislation of the governing body of the government. How should the encumbrances be reported in the year-end external financial statements? As a specific identifiable component of the restricted fund balance.
As a specific identifiable component of the committed fund balance. As a specific identifiable component of the Assigned Fund balance. The encumbrances would only be reported in the note disclosure. Only the General Fund can report a positive amount in Unassigned Fund Balance. In all other Governmental Fund types (including a Special Revenue Fund), if expenditures exceed amounts restricted, committed, or assigned, it may be necessary to report a negative Unassigned Fund Balance.
Should that occur, the Assigned Fund Balance is reduced to eliminate the deficit. If a deficit remains after eliminating Assigned Fund Balance, the negative residual should be classified Unassigned Fund Balance. On March 2, 2005, Finch City issued 10-year general obligation bonds at face amount, with interest payable March 1 and September 1. The proceeds were to be used to finance the construction of a civic center over the period April 1, 2005, to March 31, 2006. During the fiscal year ended June 30, 2005, no resources had been provided to the Debt Service Fund for the payment of principal and interest. The liability for the general obligation bonds should be recorded in the: A.
General Fund. Capital Projects Fund.
General long-term debt account group. Debt Service Fun. General long-term debt account group. The general long-term debt account group is used to account for all unmatured long-term indebtedness of the government, except for that debt belonging to Proprietary and similar Trust Funds. The liability for the general obligation bonds should be recorded in this account group.This answer is incorrect because a Capital Projects Fund is used to account for financial resources to be used for the construction or acquisition of capital assets, except for those to be financed by Proprietary Funds or Trust funds.
The proceeds from the issuance of the bonds should be recorded in a Capital Projects Fund, but the liability for the bonds should not be recorded in a Capital Projects Fund. A decrease in Expenditures. Interfund Reimbursements are Nonreciprocal Transactions in which a government determines that an expenditure or expense was initially recorded in one fund and should be accounted for and reported as an expenditure or expense in another fund.
In this example, the General Fund paid and recorded as an expenditure all of an invoice that included a portion that pertained to another fund. The reimbursement from the Enterprise Fund should be recorded as a decrease in expenditures in the General Fund, to offset that portion previously recognized as an expenditure in the General Fund that was attributable to the Enterprise Fund. The Enterprise Fund should record an increase in expense at the time the reimbursement is made. The General Fund, the Debt Service Fund, the General Capital Assets accounts, and the General Long-Term Liabilities accounts. The General Fund will account for the copier equipment as an expenditure, the Debt Service Fund will account for current year capital lease payments, the General Capital Asset accounts (not part of any fund) will account for the full cost of the copier equipment, and General Long-Term Liabilities accounts will (not part of any fund) will account for the unmatured capital lease liability.
Restricted as to their use by the donor, grantor, or other source of the resources In government hospitals and non-government hospitals restricted funds or assets, both permanent and temporary, can only be restricted as to use by the donor, grantor, or other source of the resources. The restricted assets are presented differently on the year-end balance sheet of a government hospital and a non-government hospital, as a result of FASB Statement No. For a government hospital, the type of restriction determines the fund in which the restricted assets will be reported.
The format of the non-government hospital's balance is specified by FASB Statement No. This statement requires that the information be presented on an entity-wide basis, not an individual fund approach. On the face of the statement, assets are presented in three broad categories: 1.
Unrestricted, 2. Temporarily restricted, and 3. Permanently restricted. $530,000 Total revenues, gains, and other support on the Statement of Operations includes all Operating Revenues reported under Unrestricted Net Assets in the Statement of Activities. This amount includes Net Patient Service Revenues (net of Charity Care Revenues) of $400,000, Other Revenue (often called Other Operating Revenue) of $80,000 and the portion of Temporarily Restricted Net Assets used for operations of $50,000 during the current period for a total of $530,000.
Bad debt expense is not netted with Net Patient Service Revenue, but is separately deducted with the other operating expenses. (1) Yes (2) NO Government hospitals classify revenues into three broad categories: Patient Service Revenues, Premium Fees, and Other Revenues. The Other Revenues category includes revenues generated by ongoing activities of the hospital other than patient care.
Revenues from educational programs are included in this category. Government hospitals record unrestricted gifts as Nonoperating Gains in the General Fund.
If we assume that the hospital is not a government entity, then it must conform with FASB Statement No. The revenues from educational programs would still be classified as Other Operating Revenues. The unrestricted gifts would be classified as Revenues from Contributions. Operating Revenues.
An appropriation from the state is a Nonoperating Revenue. Operating Revenues would include items such student tuition, grants and contracts, and auxiliary enterprise (bookstore, dorms). Nonoperating Revenues. A state university is an example of a special purpose government.
Since it is engaged only in business-type activities, it should report the financial statements required for Enterprise Funds. In that case, state appropriations to the university are Nonoperating Revenues.