ACC 406 Exam 3 Questions with Verified Solutions Latest

ACC 406 Exam 3 Questions with Verified Solutions Latest Total Revenue - Answers Contributions (support) + Investment (revenues) + net assets released from restriction fund financial statements - Answers -Focus on budget accountability (through reporting sources, uses, and balances of the current financial resources that have been entrusted to governmental officials - uses the modified accrual basis Government-wide financial statements - Answers Provide information about the government on an accrual basis Steps of Government-Wide Financial Statements - Answers -Record Budget Entry - Record Transactions - Prepare Fund Financial Statements - Record Closing Entries and Reverse Budget Entry - Add LT Assets / Liabilities, Convert to accrual basis - Prepare government-wide financial statements Interfund Transactions - Answers Loans, Service provided and used, Transfers, Reimbursements Loans JE - Answers Fund Paying Cash (X) DR: Due from Fund Y CR: Cash Fund Receiving Cash (Y) DR: Cash CR: Due to Fund X Services JE - Answers Fund Paying Cash (X) DR: Expenditures CR: Cash Fund Receiving Cash (Y) DR: Cash CR: Revenue Transfers JE - Answers Fund Paying Cash (X): DR: Expenditures CR: Cash Fund Receiving Cash (Y) DR: Cash CR: Revenue Reimbursements JE - Answers Fund Paying Cash (X) DR: Expenditures CR: Cash Fund Receiving Cash (Y) DR: Cash CR: Expenditures Governmental Funds - Answers Funds that segregate and track customary government activities funded by taxes or federal/state revenue sharing - general fund, special revenue funds, captial project funds, debt service funds, permanent funds General Fund - Answers all resources except those in another fund - the government's main operating fund - must always be reported in a separate column even if it does not meet the conditions above Special Revenue Funds - Answers federal / private grants Capital project funds - Answers construction / renovation of buildings and infrastructure Debt service funds - Answers bond sinking fund to pay principal at maturity Permanent funds - Answers gifts and endowments Propriety funds - Answers - funds that segregate and track business-like activities (UW System) - Governments typically set fees to cover costs but not to generate significant excess cash flow Fiduciary funds - Answers funds that segregate and track resources held in trust for others (employee retirement plans) Major fund criteria - Answers - 10% test: total assets, liabilities, revenues, or expenditures are at least 10% of the corresponding total for all funds of the fund's type - 5% test: the same elements that met the 10% criteria is at least 5% of the corresponding element total for all funds combined 5 Notable properties of the presentation of fund balance sheets - Answers 1. disaggregated by major fund 2. show NO long term assets or liabilities 3. has a new section: Deferred inflows of resources 4. shows fund balances by category (5) 5. Assets = Liabilities + deferred inflows + fund balances