FAR 3

Question 1

Unrestricted cash contribution will be in ??? CF

Answer 1

Operating

Question 2

Donation of assets will be in ?? CF

Answer 2

investing

Question 3

Donor restricted long term contribution will be in ??? CF

Answer 3

Financing

Question 4

Method used by NFP entities to prepare Statement of activities

Answer 4

indirect or direct

Question 5

how to record conditional and unconditional pledge

Answer 5

un: contribution rev (op CF)
con: liability, not record rev

Question 6

How to record an unconditional pledge provided over years?

Answer 6

1st year = contribution wo restriction

the rest: contribution WITH restriction

Question 7

2 things included in NFP Financing CF

Answer 7

1) donor restricted contribution for long-term purpose
2) other fin act (debt related)

Question 8

Journal entry for noncash asset gift

Answer 8

Asset
Contribution Revenue

Question 9

3 conditions for a gifted asset to be recognized as revenue

Answer 9

1) used for display
2) preserved
3) when sold, used to reinvest

Question 10

Prop tax goes to

Answer 10

General fund

Question 11

3 categories of funds

Answer 11

1) Gov : gen, special, debt, captal, permanent
2) Proprietary: ent, internal
3) fiduciary: inv, ppt, pension, custodial

Question 12

GASB accounting principle

Answer 12

Flows and balance of current financial resource

Question 13

The role of custodial fund

Answer 13

to maintain resource

Question 14

Permanent fund deals in

Answer 14

Asset with restricted principal (both period of time and its purpose)

Question 15

Basic criterion to determine the reporting entity for a governmental unit

Answer 15

Financial accountability

Question 16

Gov-wide FS use what accounting method?

Answer 16

Full accrual

Question 17

How do governmental funds treat depreciation expense

Answer 17

They don’t.
It is shown for full accrual

Question 18

Tax collection fund is included in

Answer 18

Fiduciary fund

Question 19

Hotel tax fund is included in

Answer 19

Special revenue

Question 20

Sales tax for specific servive

Answer 20

Special service fund

Question 21

permanent endowment

Answer 21

permanent fund

Question 22

int and prin for debts

Answer 22

Debt service

Question 23

A gov collect tax for other gov, which fund?

Answer 23

Custodial

Question 24

Federal grants restircted for some purpose goes to

Answer 24

Special Revenue

Question 25

Police salarty is handled by

Answer 25

Gen fund

Question 26

Private purpose trust fund is used to

Answer 26

specific org ot indivisual

Question 27

5 funds that use Modified accrual

Answer 27

gen, cap, sp, perm, debt