ACCT 4421 Chapter : Chapter 4

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azuremammoth471

15 Mar 2019

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Document Summary

Basis of accounting - when transactions and other events are recognized. Measurement focus what is being reporting upon. Revenue recognition: gaap for revenue recognition is gasb stmt. 33: under modified accrual basis, revenue cannot be recognized until they are both measurable and available to finance expenditures of fiscal period, collection of cash must be reasonably assured before revenues can be recognized. Available - 60 day rule (collected within 60 days after year end) has become the benchmark. But some governments have also established 30, 90 days or 1 year time periods. Examples are property taxes or certain grants: some nonexchange transactions may be delayed until program eligibility requirements are met, purpose restrictions or eligibility requirements. These specify the purpose for which the resources must be used. Recognizing revenues in governmental funds: exchange transactions each party gives and receives substantially equal value. Four categories of nonexchange transactions: derived tax revenues, imposed nonexchange transactions, government-mandated nonexchange transactions, voluntary nonexchange transactions.

Related Questions

1. Which standard issued by the Governmental AccountingStandards Board in 1999 requires two distinct sets of financialstatements for state and local governments?

A) GASB Statement No. 32
B) GASB Statement No. 33
C) GASB Statement No. 34
D) GASB Statement No. 35
E) GASB Statement No. 36

2. Which group of governmental financial statements reports allrevenues and all costs of providing services each year?

A) GAAP-Based Financial Statements
B) Fund-Based Financial Statements
C) Cost-Based Financial Statements
D) Government-Wide Financial Statements
E) General Fund Financial Statements

3. Proprietary fundsare

A) Funds used to account for the activities of a government thatare carried out primarily to provide services to citizens
B) Funds used to account for a government's ongoing organizationsand activities that are similar to those operated by for-profitorganizations
C) Funds used to account for monies held by the government in atrustee capacity
D) Funds used to account for all financial resources except thoserequired to be accounted for in another fund
E) Funds used to account for revenues that have been legallyrestricted as to expenditure

4. Fiduciary fundsare

5. The term "current financial resources" refers to

A) Those assets that can quickly be converted into cash
B) Monetary assets that are available to meet the government'sneeds
C) The government's current assets and current liabilities
D) The current value of all net assets owned by the governmentalunit
E) Financial resources used to provide electricity to localcitizens

6. Which group of financial statements is prepared using the"modified accrual accounting" approach?

A) GAAP-Based Financial Statements
B) Fund-Based Financial Statements
C) Cost-Based Financial Statements
D) Government-Wide Financial Statements
E) General Purpose Financial Statements

7. Under modified accrual accounting, when should anexpenditure to recognize interest on long-term debt berecorded?

A) At the end of each accounting period
B) When payment is due within one fiscal year
C) When payment is due
D) When cash is available to pay the interest
E) When the interest is incurred

8. Revenue from property taxesshould be recorded in the General Fund

A) when received
B) when there is an enforceable legal claim
C) when they are available for recognition
D) in the period for which they are required or permitted to beused
E) in the period in which the tax bills are mailed

9. A city received a grant of$5,000,000 from a private agency. The money was to be used to builda new city library. In which fund should the money be recorded forthe Fund-Based Financial Statements?

A) The General Fund
B) An Expendable Trust Fund
C) A Capital Projects Fund
D) An Agency Fund
E) A Permanent Fund

10. For government-wide financialstatements, what account is credited when a piece of equipment isleased on a capital lease?

A) Equipment - Capital Lease
B) Encumbrances - Long Term
C) Encumbrances - Lease Obligations
D) Capital Lease Obligation
E) The lease is not recorded

11. Jones College, a publicinstitution of higher education, must prepare financialstatements

A) As if the college was an enterprise fund
B) Following the same rules as state and local governments
C) According to GAAP
D) As if the college was a fiduciary fund
E) In the same manner as private colleges anduniversities

peachlion740

Obtain a copy of the Comprehensive Annual Financial Report(CAFR) for the State of Texas for the Fiscal Year Ended August 31,2014 from the Texas Department of Finance and Administrationwebsite -

http://www.texastransparency.org/State_Finance/Budget_Finance/Reports/Comprehensive_Annual_Financial/14/,

and answer the following questions. Provide page numbers whereyou found the information. You may copy and paste text from theCAFR. Please submit type-written answers.

Page numbers (1-283) can be found at the bottom of each page ofthe CAFR document and should be included in the blank provided tothe left of each question to reference where your selected answerswere located within the CAFR report. Note that the PDF Adobe pagenumbers (1-294) at the top of the screen will be different from theCAFR page numbers and should not be referenced for purposes of thisexercise.

______1. Provide the name and title of the individualresponsible for transmitting the CAFR to the Governor, Members ofthe Legislature, and Citizens of the State of Texas.

______2. Who was the CAFR report transmitted to?

______3. What achievement was awarded for the State of TexasCAFR for the prior fiscal year ended August 31, 2013? Who grantedthe award and what are the requirements?

______4. Who performed an audit of the financial statements forthe State of Texas? For the Independent Auditorâs Report, whatletterhead was the opinion printed on, who signed the audit report,and what was the date of the audit report?

_____5. The audit of the State of Texas financial statements wasconducted in accordance with which standards?

______6. What type of audit opinion did the State of Texasreceive for the fiscal year ended August 31, 2014? Provide thelanguage included in the opinion paragraph of the audit report.

_____7. The government-wide financial statements are designed toprovide the reader with a broad overview of the Stateâs finances.What are the names of the government-wide financial statements?

The government-wide financial statements are prepared using the_______ basis of accounting and the _________ measurementfocus.

_____ 8. As for other state and local governments, what are the3 fund categories for the Texasâs fund financial statements?

_____ 9. Most of the Stateâs general activities are reported ingovernmental funds. Governmental funds are accounted for using the______ basis of accounting and ________ measurement focus.

_____ 10. The State of Texas maintains two types of ProprietaryFunds: enterprise and internal service. The fiscal 2014 financialstatements include ______ total enterprise funds, including _____major fund and _____nonmajor funds.

List the major enterprise fund:

_____ 11. What Required Supplementary Information (RSI) andother supplementary information is included in the TX CAFRreport?

_____ 12. What was the total $ amount of the Stateâs combinednet assets for governmental and business-type activities for thefiscal year 2014?

_____ 13. What were the Stateâs two major revenue sources, andwhat were the $ amounts? Together, they accounted for _______percent of total revenues.

_____ 14. Expenses reported on the Government-wide financialstatements are reported on a functional basis. Name the 10functional categories of expenses for the Stateâs governmentalactivities and rank them for 2014 in $ amounts from largest tosmallest:

_____ 15. The bulk of the Stateâs total expenses for fiscal 2014were related to the health and social services function. What wasthe $ amount of the expenses for this function, and what % of totalprimary government expenses do these expenses represent?

_____ 16. What is the chief operating fund of the State, andwhat was its ending fund balance as of Aug. 31, 2014?