CGFM EXAM 2 STUDY WITH
COMPLETE SOLUTIONS
Non-Spendable Fund Balance - Answers -Assets not in spendable form-Inventories and
prepaid items, principal of a permanent fund which may not be spent, and assets held
for sale and long-term receivables. Examples: Supplies, inventory, membership fees
Restricted Fund Balance - Answers -Subject to constraints imposed by external parties
or law. Debt covenants (such as a requirement for a sinking fund) or constraints
imposed by legislation or federal and state agencies, creditors, contributors or granting
agencies
Three Categories of net position section of the government-wide Statement of Net
Position - Answers -Restricted, Committed & Assigned
What statement is required for Agency Funds - Answers -Assets and Liabilities are
included in the Fiduciary Funds Statement of Fiduciary Net Position but are not included
on the Statement of Changes in Fiduciary Net Position. CAFR should include a
Combining Statement of Changes in Assets and Liabilities - All Agency Funds.
Distinguishing characteristic of Private-purpose Trust Funds - Answers -The benefit is
limited to specific private, rather than general public purposes
What is a Derivative Instrument - Answers -Financial Contracts whose fair value is
derived form the price of an underlying asset or obligation
Calculation for Interest (accrual for receipt or payment) - Answers -Principle * Interest *
# 0f months/12 (2/12 for 2 months of interest to accrue)
Committed Fund Balance - Answers -Governing body formally committed net resources
to specific activities. Contractual obligations outstanding. Board approval of large
construction contracts would typically represent commitment of the funds.
Assigned Fund Balance - Answers -Residual balances in funds other than the General
Fund or in the general fund that are intended for identified purposes
Difference between Committed and Restricted - Answers -Committed constraint is
imposed by a government upon itself
, GASB standards state that rainy day funds may be classified as committed only under
specific circumstances which are - Answers -they are created by a resolution or
ordinance that identifies the specific circumstances under which the resources may be
expended
Other financing sources consist of - Answers -transfers in from other funds and
proceeds of long-term borrowing
Fund Revenues consist of - Answers -taxes, charges for services, amounts provided by
other entities such as state or federal government
Other fund uses - Answers -Transfers of cash out of one fund to other funds
To recognize revenue from the General Fund transferred to a debt service fund to
record payments of interest and principal on general obligation debt - Answers -Credit
General Fund Tax Revenue
Debit General Fund Other Financing Uses-Transfers Out
Debit Debt Service Fund Other Financing Sources - Transfer In
Credit Debt Service Fund Expenditures
Fund Budgetary Accounts - Answers -Estimated Revenues, Appropriations, Estimated
Other Financing Sources, Estimated Other Financing Uses, Encumbrances
Fund Activity Accounts - Answers -Revenues, Expenditures, Other Financing Sources,
Other Financing Uses
Fund Revenues - Answers -Tax Revenues, Charges for Services
Fund Expenditures - Answers -Current, Capital Outlay, Debt Service
Other Financing Sources - Answers -Transfers In, Debt Proceeds
Other Financing Uses - Answers -Transfers Out
When a PO or Contract is issued as authorized by an appropriation the government
recognizes this commitment as - Answers -An encumbrance (not yet a liability)
JE for City Council approves fiscal year budget for General Fund
JE for Financial Statement Accounts - Answers -DR Estimated Revenues
CR Appropriations
Budgetary Fund Balance is a CR
NONE
JE for City Departments issue PO for goods and services
JE for Financial Statement Accounts - Answers -DR Encumbrances Control
COMPLETE SOLUTIONS
Non-Spendable Fund Balance - Answers -Assets not in spendable form-Inventories and
prepaid items, principal of a permanent fund which may not be spent, and assets held
for sale and long-term receivables. Examples: Supplies, inventory, membership fees
Restricted Fund Balance - Answers -Subject to constraints imposed by external parties
or law. Debt covenants (such as a requirement for a sinking fund) or constraints
imposed by legislation or federal and state agencies, creditors, contributors or granting
agencies
Three Categories of net position section of the government-wide Statement of Net
Position - Answers -Restricted, Committed & Assigned
What statement is required for Agency Funds - Answers -Assets and Liabilities are
included in the Fiduciary Funds Statement of Fiduciary Net Position but are not included
on the Statement of Changes in Fiduciary Net Position. CAFR should include a
Combining Statement of Changes in Assets and Liabilities - All Agency Funds.
Distinguishing characteristic of Private-purpose Trust Funds - Answers -The benefit is
limited to specific private, rather than general public purposes
What is a Derivative Instrument - Answers -Financial Contracts whose fair value is
derived form the price of an underlying asset or obligation
Calculation for Interest (accrual for receipt or payment) - Answers -Principle * Interest *
# 0f months/12 (2/12 for 2 months of interest to accrue)
Committed Fund Balance - Answers -Governing body formally committed net resources
to specific activities. Contractual obligations outstanding. Board approval of large
construction contracts would typically represent commitment of the funds.
Assigned Fund Balance - Answers -Residual balances in funds other than the General
Fund or in the general fund that are intended for identified purposes
Difference between Committed and Restricted - Answers -Committed constraint is
imposed by a government upon itself
, GASB standards state that rainy day funds may be classified as committed only under
specific circumstances which are - Answers -they are created by a resolution or
ordinance that identifies the specific circumstances under which the resources may be
expended
Other financing sources consist of - Answers -transfers in from other funds and
proceeds of long-term borrowing
Fund Revenues consist of - Answers -taxes, charges for services, amounts provided by
other entities such as state or federal government
Other fund uses - Answers -Transfers of cash out of one fund to other funds
To recognize revenue from the General Fund transferred to a debt service fund to
record payments of interest and principal on general obligation debt - Answers -Credit
General Fund Tax Revenue
Debit General Fund Other Financing Uses-Transfers Out
Debit Debt Service Fund Other Financing Sources - Transfer In
Credit Debt Service Fund Expenditures
Fund Budgetary Accounts - Answers -Estimated Revenues, Appropriations, Estimated
Other Financing Sources, Estimated Other Financing Uses, Encumbrances
Fund Activity Accounts - Answers -Revenues, Expenditures, Other Financing Sources,
Other Financing Uses
Fund Revenues - Answers -Tax Revenues, Charges for Services
Fund Expenditures - Answers -Current, Capital Outlay, Debt Service
Other Financing Sources - Answers -Transfers In, Debt Proceeds
Other Financing Uses - Answers -Transfers Out
When a PO or Contract is issued as authorized by an appropriation the government
recognizes this commitment as - Answers -An encumbrance (not yet a liability)
JE for City Council approves fiscal year budget for General Fund
JE for Financial Statement Accounts - Answers -DR Estimated Revenues
CR Appropriations
Budgetary Fund Balance is a CR
NONE
JE for City Departments issue PO for goods and services
JE for Financial Statement Accounts - Answers -DR Encumbrances Control
