Governmental and NFP acct

James Black is reviewing his city's financial reporting because he wants to run for the city council. He is concerned that the city is not using its resources effectively. James is primarily interested in:

operational accounting

the expenditure classification "city attorney" is an example of which of the following types of classification

organization unit

assets held in trust to provide retirement benefits for municipal workers

pension

gifts in which the principal must be invested and preserved but the investment earnings can be used for public purposes

permanent

is an appropriate amount spent on accomplishing the organization;s program goals?

program effectiveness

Tuition scholarships for which there is no intention of collection from the student should be classified by a private university as

reductions of gross revenue to arrive at net revenue

under FASB standards how would a NFP recognize a condition; pledge?

it would not recognize the conditional pledge until pledge conditions are substantially met

the estimated control account of a government is credited when

not when budgetary accounts are closed and not when revenues are recorded

assets held for external government participants in the government's investment pool for the purpose of earning investment income

investment trust

an individual can generally receive a tax deduction for contributions to which type of NFP org?

501 c3

Contractual adjustments that arise from differences between the gross charge for patient services and the amount paid by a third party payor are reported as: A. Deductions from gross patient revenue in arriving at net patient revenue. B. Disclosures in the notes to the financial statements. C. Either deductions from gross patient revenue or disclosure in the notes, depending on the dollar amount of the adjustments relative to billings. D. Bad debt expense.

A. Deductions from gross patient revenue in arriving at net patient revenue.

A not-for-profit organization is granted its legal status by which of the following? A. federal government B. State government C. the city or county D. the courts

B. state government

Which of the following financial statement reports both current and concurrent assets and liabilities?

Net position: yes Balance sheet: no

a local philanthropist made an unconditional pledge to donate $100,000 to a NFP org to be paid in five equal installments beginning in two years. Under FASB standards the pledge would be recognized as

a contribution of 100,000 in the year the pledge was made, discount for the difference between the pledge and its present value

a college has collected returnable dormitory room deposits from students, how are they reported by the college?

a current liability

the process by which a legal valuation is placed on taxable property is called

a property tax levy

Under FASB standards, which of the following contributions would not have to be reported as an asset on the statement of financial position of a not-for-profit organization?

an art collector donated a famous oil painting to a local art museum for display

according to the FASB, net assets with donor restrictions are released from restrictions

as assets are spent for the purposes intended for by the donor

what financial statements are required for a debt service fund

balance sheet and statement of revenues, expenditures, and changes in fund balance

construction of a public building

capital projects

Does the organization rely more on debt or net assets to finance its operations?

capital structure

what is limited as to use

cash designated for something

what is required in the CAFR but not by GASB

combining and individual fund financial statements

the budgeted excess of revenues over appropriations will be recorded as

credit to budgetary fund balance

when supplies ordered for use in an activity accounted for in the General Fund are received at an actual practice is more than the estimated price on the purchase order, the encumbrance account is

credited for the estimated price on the purchase order

When the budget of a government is adopted and Estimated Revenues exceed Appropriations, the excess is:

credited to budgetary fund balance

The General Fund of the City of Castle Rock transfers $115,000 to the debt service fund for a $100,000 principal and $15,000 interest payment. The recording of this transaction would include:

debit: expenditures- bind interest in the debt service fund

Dover City has calculated that General Fund property tax revenues of $5,640,000 are required for the current fiscal year. Over the past several years, the city has collected 94 percent of all property taxes levied. The city levied property taxes in the amount that will generate the required $5,640,000. Which of the following general journal entries would correctly record the property tax levy?

debit: taxes receivable- current credit:deferred inflows of taxes revenues

principal and interest payments on general long-term debt

debt service

T or F: debt margin is reported in the governmental activities column of the government wide statements

false

T or F: overlapping debt is a calculation of the difference between the amount of debt limit calculated as prescribed by law and the net amount of outstanding indebtedness subject to limitation

false

what percentage of contributions remains after deducting the cost of raising the contributions?

fund raising ratio

are revenues sufficient to cover expenses

going concern

in accounting for state and local governments the modified accrual basis is required for

governmental funds

what is a typical classification of a functional expense in a college or university

institutional support

a private college would report which of the following assets differently than a public college? land intangible assets collections equipment

intangible assets

are earnings on investments on target?

investment performance

A city received resources that the state indicates can only be used for public works projects, such as road construction. Assuming the resources have not been expended by year end, how would the resources the city received be shown in the city's fund balances?

restricted fund balance

the income most likely to be considered unrelated business income of a human service organization that provides immunizations to children in the community is

selling sweatshirts about cost

grant revenues restricted for particular operating purposes

special revenue

what must happen for a contributed service to a NFP to be recorded as both a contribution and as an expense

specialized skills and is provided by some who possesses specialized skills

The GASB is assigned responsibility for setting accounting and financial reporting standards for

state and local government entities and governmentally-related units and agencies, such as utilities, authorities, hospitals, and colleges and universities

what statement is not prepared by nongovernmental NFP health care entities

statement of revenues, expenditures, and changes in net assets

The Revenues account of a government is debited when:

the account is closed to a fund balance- unassigned at the end of the year

to offset engineering and design costs incurred prior to the issuance of a long term bond issue, a capital projects fund borrowed the sum on a short term basis loan. The transaction should be recorded in

the capital projects

a good measure of whether a NFP is operating its programs efficiently is

the ratio of program expenses to number of clients served

T or F: debt limit represents the total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any one time

true

T or F: no depreciation can be recorded in any governmental fund, but depreciation expense must be recorded in the governmental activities account

true