Becker - FAR F6 Flashcards

Governmental Fund

Fund that accounts for resources that are restricted, committed, or assigned to specific activities or objectives within the government

Current Financial Resources, Modified Accrual Basis

What is the measurement focus and basis of accounting for governmental funds?

General

Special Revenue

Debt Service

Capital Projects

Permanent

What are the five types of governmental funds?

Proprietary Fund

Type of fund that accounts for business-type activities

Economic Resources, Full Accrual Basis

What is the measurement focus and basis of accounting for proprietary funds?

Internal Service

Enterprise

What are the two types of proprietary funds?

Fiduciary Fund

Type of fund that accounts for assets held in a trustee or agency capacity for others

Economic Resources, Full Accrual Basis

What is the measurement focus and basis of accounting for fiduciary funds?

Custodial

Investment Trust

Private Purpose Trust

Pension (Other Employee Benefit)

What are the six types of fiduciary funds?

Condition

Something that must happen before the not-for-profit (NFP) organization can recognize the revenue or before the donor is obligated to pay

Restriction

A limitation on how the NFP can use the funds after they have been received and recognized as revenue

Modified Accrual Basis

Revenues should be recognized for the accounting period in which they become available and measurable

D

At which of the following amounts should a nongovernmental not-for-profit organization report investments in debt securities?

A. Discounted expected future cash flows.

B. Historical cost.

C. Potential proceeds from liquidation sale.

D. Quoted market prices.

False (Included As Element of Expense)

In a Statement of Activities of the People's Environmental Protection Association, a voluntary community organization, depreciation expense should not be included.

True or False?

Change in Interest in Net Assets on Statement of Activities

How does a beneficiary organization report changes in its financial interest in a financially interrelated not-for-profit organization?

True

In complying with GASB 34, a government will present separate fund financial statements for its governmental and proprietary funds. The purpose of this presentation is to report additional and detailed information about the primary government.

True or False?

Quasi-Endowment

A fund that a nonprofit organization's board of directors designates or sets aside from its net assets that were originally received without donor restrictions