ACCTG 462 Lecture Notes - Lecture 2: Cash Flow Statement, Audit, Financial Statement
Document Summary
Comprehensive annual financing reporting (cafr) vs minimum reporting. Introductory section - unaudited: title page, table of contents. 3 ways of assessing financial accountability: financial benefit / burden, fiscal dependence. Imposition of will similar to majority stockholder . Invested in capital assets net of related debt (normally include all long-term activities) Capital assets less debt to supply those assets. Restricted assets restricted by law or third party. Governmental type fund use modified accrual accounting. Must be converted to accrual accounting then added. Statement of activities (similar to income statement, p. 31) General revenues all taxes, bottom section governmental-type activities revenues cannot sustain expenditures. Change in net position (similar to net income) Statement of revenues, expenditures, and changes in fund balance (p. 35) Debt service expenditures payments on long-term debts. Statement of revenues, expenses, and changes in fund net position - p. 53. Nonoperating items include interest expense, or revenue, and gains/losses on sales of assets p. 41 cash flow statement.
