What is the GAAFR? Who creates the GAAFR?
> For nongovernmental NFP, how is the expiration of a time restriction recognized?
> 1. When a temporary restriction on resources of a nongovernmental not-for-profit entity is met by the incurrence of an expense for the restricted purpose: a The expense is reported in the statement of activities as an increase in unrestricted net assets.
> For nongovernmental NFP, explain the difference between a conditional promise to give and an unconditional promise to give.
> The following information was taken from the accounts and records of the Community Society, a nongovernmental not-for-profit organization. The balances are as of December 31, 2016, unless otherwise stated: Unrestricted support—contributions.............
> If property tax bills totaling $200,000 are mailed to taxpayers and 97 percent are deemed collectible, what amount should be recorded as revenue?
> What is the authoritative status of AICPA Audit and Accounting Guides for not-for-profit and health care organizations as of 2016?
> How does one determine whether a hospital, college, or voluntary health and welfare organization should be reported in accordance with FASB standards or GASB standards?
> Identify the functional expense classifications for a university. Provide an example of each.
> Describe the reporting requirements for a governmental not-for-profit entity with both governmental and business-type activities.
> Describe the difference in a set of financial statements for a governmental university and a private not-for-profit university.
> Does the BAPCPA establish priorities for holders of unsecured nonpriority claims (i.e., general unsecured claims)?
> The following selected items were taken from the accounts of Hometown Memorial Hospital, a not-for-profit hospital, at December 31, 2016: Debits Administrative services............................................................................. $310,00
> 1. Tuition waivers for scholarships are: a Not reflected in the accounting records b Recorded in a contra revenue account c Recorded as institutional support expenses d None of the above 2. Auxiliary enterprises in a college and university include all o
> What are the major revenue groupings of hospitals? Give an example of a revenue item that would be included in each grouping.
> Is it possible to avoid estate taxation by giving assets as gifts prior to death?
> Expenses of voluntary health and welfare organizations include classifications for program services and supporting services. Explain these classifications.
> Are debt service funds used to account for debt service on all long-term obligations of a governmental unit? If not, which long-term debt obligations are excluded?
> For nongovernmental NFP, are gifts in kind always reported as unrestricted support that increases unrestricted net assets?
> For nongovernmental NFP, how are unconditional promises to give with collections due in the next period accounted for?
> Describe a transaction that would affect the general fund and the debt service fund at the same time.
> For nongovernmental NFP, explain the difference between donor-imposed conditions and donor-imposed restrictions.
> What statements are included in a set of financial statements for nongovernmental not-for-profit entities?
> Discuss the two options that not-for-profit organizations have for recording donated fixed assets.
> The reorganization value of a firm emerging from Chapter 11 bankruptcy is used to determine the accounting of the reorganized company. Explain reorganization value as used in FASB ASC 852.
> Why do governmental entities use fund accounting? How many funds might be used by a single governmental unit? How many fund types?
> Other than FASB standards and the AICPA guide, where can you find guidance on accounting and reporting issues for colleges and universities?
> When is the AICPA college guide model used?
> Are provisions for bad debts and depreciation of hospitals reported as expenses? Explain.
> Discuss the requirements for approval of a plan of reorganization.
> 1. Contributions that are restricted by a donor to a nongovernmental not-for-profit organization are reported as a part of: a Permanently restricted net assets b Temporarily restricted net assets c Unrestricted net assets d Either permanently restricted
> Which unsecured claims have priority in a Chapter 7 liquidation case? Discuss in terms of priority ranks.
> How are net patient service revenues of hospitals measured, and in which hospital financial statement are they reported?
> Health care entities frequently provide charity care to qualified individuals. How is charity care reported in the financial statements of a hospital?
> A voluntary health and welfare organization summarizes its expenses by function, as follows: Education.......................................... $20,400 Fund-raising......................................... 11,400 Management and general.................
> 1. A university that is considered a special-purpose government: a Is generally required to follow GASB standards b Is generally required to follow FASB standards c Should refer to the AICPA Audit and Accounting Guide for governmental colleges and univer
> Are contributed services reported in the statement of activities of a nongovernmental voluntary health and welfare organization?
> How do the purchases and consumption methods of accounting for inventory differ?
> How does the presentation of an enterprise major fund differ from the presentation of an internal service major fund?
> You have been hired as trustee for the testamentary trust created by the will of George Wilson. The trust is created on April 30, 2015. (Use the information provided in P 23-3 and P 23-4.) The trust initially invests the proceeds from the estate in a che
> Which fund financial statements include internal service fund data? Which government-wide statements include internal service fund data?
> What fund financial statements are needed for an enterprise fund to meet the requirements for fair presentation in accordance with GAAP? Which government-wide statements include enterprise fund data?
> What does it mean to die intestate?
> How are enterprise and internal service funds similar? How are they different?
> Do governmental financial statements indicate whether a pension plan is fully funded? Explain.
> How many columns (not including total columns) are needed for a government-wide statement of net position of a governmental unit with a general fund, two special revenue funds, three internal service funds, four enterprise funds, and a component unit? Ex
> How does a private-purpose trust fund differ from a permanent fund?
> How might an internal service fund be financed initially? How will the financing appear in the fund financial statements?
> Jut filed a petition under Chapter 7 of the bankruptcy act in January 2016. On March 15, 2016, the trustee provided the following information about Jut’s financial affairs. REQUIRED: 1. Determine the amount expected to be available fo
> Why is it important for internal service funds to differentiate between revenues generated by interfund transactions and transactions with external parties?
> Under what circumstances does a firm emerging from bankruptcy qualify for fresh start reporting? Can you find an example of how a firm should report in a fresh start reporting situation?
> How are capital projects funds financed, and when would a capital projects fund be terminated?
> Because proprietary funds are accounted for in much the same manner as commercial business organizations, is it appropriate for FASB pronouncements to be used for their accounting?
> What fund types are included in the fiduciary fund category? Where are they reported in the financial statements?
> You have been hired as trustee for the testamentary trust created by the will of Jimmy Olson. The trust is created on July 22, 2015. (Use the information provided in P 23-1.) The trust initially invests the proceeds from the estate in a checking account
> How does a proprietary fund statement of cash flows differ from a commercial enterprise’s statement of cash flows?
> Cite some governmental operations that might be accounted for through an internal service fund.
> How might the enterprise fund amounts on the proprietary fund statement of net position differ from the amounts reported as “business-type activities” on the government-wide statement of net position?
> Under what circumstances will a proprietary fund be required to report segment information?
> What is the purpose of the statement of functional expenses of voluntary health and welfare organizations?
> What organization provides accounting standards for state and local governmental units? What hierarchy of authority do they use?
> What is the accounting equation for an agency fund?
> The following data are available from the City of Boulder’s financial records on September 30, 2016: a. The net change in fund balance—total governmental funds for the city is $1,408,950. b. The city purchased general fixed assets at a historical cost of
> Han filed a petition under Chapter 7 of the bankruptcy act on June 30, 2016. Data relevant to its financial position as of this date are: REQUIRED: 1. Prepare a statement of affairs assuming that the note payable and interest are secured by a mortgage
> 1. Fiduciary funds include four different types of funds. Which of the following is not one of these types? a Agency funds b Tax collection funds c Private-purpose trust funds d Pension trust funds 2. Agency funds maintain accounts for: a Liabilities b
> The postclosing trial balance for the Village of Alantown general fund at June 30, 2016, shows the following ledger account balances: Debits Cash.................................................................................................. $410,000
> For each of the following transactions, note the fund(s) affected, and prepare appropriate journal entries. 1. General obligation bonds with a par value of $750,000 are issued at $769,000 to finance construction of a government office building. 2. A Comm
> Prepare the journal entries required to record the following transactions in the general fund of Rochester Township. 1. Borrowed $75,000 by issuing six-month tax anticipation notes. 2. Ordered equipment with an estimated cost of $33,000. 3. Received th
> Prepare entries in the general fund to record the following transactions and events: 1. Estimated revenues for the fiscal year were $250,000 and appropriations were $248,000. 2. The tax levy for the fiscal year, of which 99 percent is believed to be coll
> The trial balance of the general fund of Madelyn City before closing at December 31, 2013, contained the following accounts and balances: Fund balance—unassigned............................ $25,000 Estimated revenues.....................................
> A general ledger trial balance at June 30, 2013, for Millar City is as follows: Millar City uses a purchases basis in accounting for supplies. Open encumbrances are considered constrained by the highest decision-making level of the city. REQUIRED: Pre
> What are the three sections of a CAFR? Briefly identify the contents of each section.
> The following information relates to revenues and expenses for a private not-for-profit college: Tuition and Fees Total assessed......................................................................................... $2,000,000 Tuition waivers.........
> A general ledger trial balance for Any City contained the following balances at June 30, 2013, just before closing entries were made: Due from other funds.......................................... $600 Fund balance—unassigned............................
> List the required governmental fund financial statements under GASB 34. On what basis of accounting are these statements prepared?
> The following events and transactions relate to the levy and collection of property taxes for Jedville Township: March 21, 2016—Property tax bills for $2,500,000 are sent to property owners. An estimated 2 percent of the property tax levies are uncollect
> 1. The billings for transportation services provided to other governmental units are recorded by the internal service fund as: a Interfund exchanges b Intergovernmental transfers c Transportation appropriations d Operating revenues 2. Which of the follo
> List the required governmental fund and proprietary fund financial statements. On what basis of accounting are these statements prepared?
> The balance sheet of Val at June 30, 2016, contains the following items: Assets Cash............................................................... $40,000 Accounts receivable—net............................... 70,000 Inventories........................
> At the beginning of 2016, the citizens of North Ptarmigan created Share Shop, a voluntary health and welfare organization. Share receives donations of money, nonperishable groceries, and household items from contributors. The food and household items are
> List the two types of proprietary funds. What distinguishes them from each other?
> List the five types of governmental funds. What are the primary distinctions among them?
> Hol is in bankruptcy and is being liquidated by a court-appointed trustee. The financial report that follows was prepared by the trustee just before the final cash distribution: Assets Cash................................................................
> 1. Which of the following statements regarding budgetary accounting is true? a When the budget is recorded, estimated revenues are debited. b Budgetary accounts are never closed. c Encumbrance is another term for appropriation. d Budgeted revenues can be
> List the authoritative documents available to financial statement preparers and auditors related to governmental accounting and financial reporting. Which is the most authoritative?
> Does filing a case under Chapter 11 of the bankruptcy act mean that the company will not be liquidated? Discuss.
> How do nonreciprocal transfers differ from reciprocal transfers?
> What are the simplified and complete accounting equations for a governmental fund?
> How do operational accountability and fiscal accountability differ? In what context are they used?
> How does an expenditure differ from an expense? Identify the funds that report expenditures and those that report expenses.
> Identify each of the fund types described. 1. A fund that is used to report assets held in a trustee capacity for others and that cannot be used to support the government’s own programs. 2. A fund used to report any activity for which a fee is charged t
> How should assets and liabilities be measured in the accounting records of an estate?
> Perez County entered into a number of transactions for the current fiscal year. Identify the fund or funds affected by each transaction and determine how each transaction will affect the accounting equation of the particular fund. 1. Perez County issued
> For each of the following events or transactions, identify the fund or funds that will be affected. 1. A governmental unit operates a municipal pool. Costs are intended to be recovered primarily from user charges. 2. A bond offering was issued at par to
> 1. The following information pertains to Walnut Corners: 2016 governmental fund revenues that became measurable..............$16,000,000 and available in time to be used for payment of 2016 liabilities Revenues earned in 2014 and 2015 and included i
> The City of Sioux Falls entered into a number of transactions for the current fiscal year. Identify the fund or funds affected by each transaction and determine how each transaction will affect the accounting equation of the particular fund. 1. Sioux Fal
> Repeat Exercise 19-7, this time assuming that the transactions involve a proprietary activity instead of a general governmental activity. Exercise 19-7 Use transaction analysis to determine the effects of each of the following transactions in the gener
> Use transaction analysis to determine the effects of each of the following transactions in the general fund. 1. Salaries paid totaled $30,000. Additional salaries incurred, but not paid, totaled $2,500. 2. Levied property taxes of $100,000; $98,000 was
> Hal Company filed for protection from creditors under Chapter 11 of the bankruptcy act on July 1, 2016. Hal had the following liabilities at the time of filing: 10% mortgage bonds payable, secured by a building...................................$200,000
> Bax has been operating under Chapter 11 of the Bankruptcy Code for the past 15 months. On March 31, 2016, just before confirmation of its reorganization plan, Bax’s reorganization value is estimated at $3,000,000. A balance sheet for Bax prepared on the
> 1. Which of the following is considered an exchange transaction under GASB 33? a A city receives a federal grant b A bus driver collects bus fare from a rider c Property taxes are collected from a homeowner d An employer withholds state income tax from e
