Questions and Answers of Accounting For Governmental And Nonprofit Entities

Utilizing the CAFR obtained for Exercise 1-1, answer these questions. a. General and Other Capital Assets: (1) Reporting of Capital Assets. Are capital
Utilizing the comprehensive annual financial report obtained for Exercise 1-1, follow these instructions. a. Governmental Activities, Government-wide Level. Answer the following
The finance director of the Town of Liberty has asked you to determine whether the appropriations, expenditures, and encumbrances comparison for Office Supplies for a certain year (reproduced as
Utilizing the CAFR obtained for Exercise 1-1, in Chapter 1, review the governmental fund financial statements and related data and government-wide financial statements. Note particularly these
Utilizing the CAFR obtained for Exercise/Problem 1-1, examine the financial statements included in the financial section and answer the following questions. If the CAFR you have obtained does not
Explain what is meant by the phrase, "A fund is a fiscal and an accounting entity."
Download a copy of the most recent comprehensive annual financial report (CAFR) for the city and county of Denver from its web site: https://www.denvergov.org/controller (click on "Financial
Using the annual financial report obtained for Exercise 1–1, answer the following questions:a. Examine the auditor’s report. Is the auditor identified as an independent CPA firm? A state audit
Use the Web sites provided in Illustration 13–7 to access your high school or school system school report card (or any other school report card of your choice). Answer the following
Using the annual financial report obtained for Exercise 1–1, answer the following questions:a. Report the following ratios, using the text material for the Village of Elizabeth as a guide:(1) Net
Obtain a copy of the annual report of a private college or university. Answer the following questions from the report. For examples, try:Baylor University:
Obtain a copy of the annual report of a private not-for-profit organization. Answer the following questions from the report (if obtaining a report online, use the site search or the “about us”
Obtain an annual report from a public college or university and answer the following questions:a. Does the institution report as a special-purpose entity engaged in (1) governmental- and
Under the reporting model required by GASB Statement 34, fund statements are required for governmental, proprietary, and fiduciary funds. Government-wide statements include the Statement of Net
Using the annual financial report obtained for Exercise 1–1, answer the followingquestions:a. Find the reconciliation between the governmental fund balances and thegovernmental-type activities net
Using the annual report obtained for Exercise 1–1, answer the followingquestions:a. Look at the Statement of Fiduciary Net Assets. Which fund types areinclud ed? Is the Statement prepared in a
Using the annual financial report obtained for Exercise 1–1, answer thefollowing questions:a. Find the Statement of Net Assets for the proprietary funds. Is the NetAsset or the Balance Sheet format
Using the annual financial report obtained for Exercise 1–1, answer the followingquestions:a. Examine the governmental fund financial statements. Are any major capitalprojects funds included? If
Using the annual financial report obtained for Exercise 1–1, answer the following questions:a. Look at the General Fund column of the Balance Sheet for governmental funds. What are the major
Using the annual report obtained for Exercise 1–1, answer the following questions.a. Look at the Statement of Revenues, Expenditures, and Changes in Fund Balances for the governmental funds. List
Chapters 2 through 9 deal with specific knowledge needed to understand accounting and financial reporting by state and local governments. A continuous problem is available on the text’s Web site
Using the annual financial report obtained for Exercise 1–1, answer the following questions:a. Report the following ratios, using the text material for the Village of Elizabeth as a guide:(1) Net
In partnership with Jefferson County, Mound City recently established a Native American Heritage Center and Museum, organized as a tax-exempt not-for-profit organization. Although the facility does
The Rural Assistance Agency operates three major programs as responsibility centers—the Food Bank, Housing Services, and Credit Counseling. Clients pay a fee for services on a sliding scale based
The complexity and uniqueness of the federal government make it difficult to conduct a meaningful analysis of its financial condition. However, conducting a financial statement analysis does provide
The trial balance of the Federal Antiquities Administration, as of August 31, 2023, follows: RequiredPrepare a statement of budgetary resources for the 11 months ended August 31, 2023, assuming
US has formed a workgroup to help develop a taxonomy for the eventual reporting of state and local government financial reports in XBRL format. Its website is
Community benefit is a critical factor in the determination of whether a hospital is granted 501(c)(3) status, which may result in significant savings in income and other taxes. IRC section 501(r)
Explain the difference between Budgetary Fund Balance and Fund Balances accounts.
Explain the difference between Budgetary Fund Balance and Fund Balances accounts.
Identify the authoritative accounting standard-setting bodies for governmental NFP organizations and nongovernmental NFP organizations.
Does the FASB require NFPs to report expenses by function, nature, or both? What is the value of reporting expenses by function and nature?
In reviewing the financial statements of your local art museum, you notice the museum’s collection of rare oil paintings is not recognized on the financial statements. Is the art museum following
What are joint costs, and how are joint costs recorded?
One of the requirements for a contribution to be considered conditional is if the agreement with the donor includes a barrier that must be overcome by the NFP. How would an NFP organization determine
In recent times, the FASB has issued several important updates to not-for-profit financial reporting including Accounting Standard Update (ASU) 2016-14, Presentation of Financial Statements of
For each of the NFP organization transactions listed, indicate which of the revenue or contribution classifications apply by choosing one or more of the letters from the listed items in the
The Atkins Museum recently hired a new controller. He was considered well qualified for the position given his experience with managerial accounting and his strong communication skills. The new
The Shannon Community Kitchen provides hot meals to homeless and low-income individuals and families; it is the organization’s only program. It is the policy of the Kitchen to use restricted
INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred.1. A business donated rent-free
The Learning Institute has presented its statement of financial position for the 2023 fiscal year.RequiredUpon reviewing the statement, you realize that it is not presented in compliance with the
A large donor has notified a private college of her decision to name the college as a beneficiary in her will. How will the college report the intention to give in its financial statements?
What is a split-interest agreement, and why do you believe a donor or a university would enter into such an agreement?
Discuss the process for recognizing revenue from tuition for private colleges and universities.
Elizabeth College, a small private college, had the following transactions in fiscal year 2023.1. Gross tuition and fees revenue totaled $5,600,000. Tuition waivers and scholarships of $346,000 were
The following is the preclosing trial balance for Allen University as of June 30, 2023. Additional information related to net assets and the statement of cash flows is also provided.Additional
The following balances come from the trial balance of Wilson State College as of the end of the 2023 fiscal year.Requireda. Prepare a statement of revenues, expenses, and changes in net position for
All health care entities follow the same set of accounting standards. Do you agree with this statement? Why or why not?
How do charity services, patient discounts, contractual adjustments, and provision for bad debts impact patient service revenue for government health care entities? Does the accounting treatment
What is premium revenue, and when is it recognized? Discuss the recognition of premium revenue relative to the matching concept in accounting.
Identify key financial indicators that can be utilized to evaluate the financial health of NFP hospitals. Are there any other metrics that are important to evaluate in determining the performance of
What is the diagnosis-related group (DRG), and how does it impact patient service revenue?
The following is the preclosing trial balance for Christina Rehabilitation Hospital as of September 30, 2023. Requireda. Prepare a statement of operations and a statement of changes in net
Discuss the intended audience for the consolidated financial report of the U.S. government. Does the FASAB identify any particular group as the primary audience?
In 2019, 22 of 24 CFO Act agencies received unmodified audit opinions. The Comptroller General disclaimed an opinion on one agency, and one received a qualified opinion. Choose one of the CFO Act
The City of Austin, Texas, maintains a website to report performance measures in the areas of public safety, community services, infrastructure services, utilities/major business enterprises,
The Commonwealth of Massachusetts maintains a website, termed a financial records transparency platform, that reports how and where tax dollars are utilized. Categories of revenues, spending, and
Choose the best answer.1. Which of the following statements regarding budgets of not-for-profit organizations is true?a. Not-for-profit organization budgets are legal documents reflecting plans for
The police chief of the Town of Meridian submitted the following budget request for the police department for the forthcoming budget year 2023–2024.Upon questioning by the newly appointed town
The City of Bancroft has produced a Service Efforts and Accomplishments report for the past three years for each of its operating departments. Key performance measurements for Bancroft’s public
Discuss how characteristics of not-for-profit organizations differ from those of for-profit organizations.
What type of NFPs are classified as 501(c)(3) tax-exempt organizations? What is a major difference between 501(c)(3) tax-exempt organizations and other tax-exempt organizations?
What information is reported on the Form 990? How would an NFP know which type of Form 990 it must file?
What are articles of incorporation, and how do they differ from bylaws of an NFP organization?
Discuss ways in which donors can evaluate the performance of NFP organizations.
Guidestar established Guidestar Platinum to allow organizations to share nonfinancial performance metrics. Organizations that choose to share nonfinancial performance metrics can receive a Platinum
You are considering making a contribution to the World Resources Institute. However, as an accountant, you decide to conduct “due diligence” related to the performance of the World Resources
Starting September 2011, Charity Navigator incorporated an Accountability and Transparency Performance Score into the overall evaluation of charities reviewed on its website. The Accountability and
The Let’s Read organization is a public charity under IRC section 501(c)(3). It had total support of the following: Of the $261,000 received from individuals, $240,000 came from four
What is the nature of enterprise fund restricted assets? Provide examples of items that might be reported in the Restricted Assets section of an enterprise fund statement of net position.
What are the three components of net position provided by the GASB? Describe how a government assigns amounts to the classifications.
The City of Cypress has prepared the following statement of cash flows for its sole proprietary fund. RequiredThe statement as presented is not in accordance with GASB standards. Identify the
When do GASB standards require interfund receivables and payables to be reported as Internal Balances?
Choose the best answer.1. GASB standards require a statement of cash flows fora. Internal service funds.b. Enterprise funds.c. All internal service funds and enterprise funds.d. Only internal service
Use the 2019 CAFR for the City and County of Denver to respond to the following questions. Requireda. Does the City and County of Denver report any internal service funds? If so, identify the
The Silverton Symphony Orchestra Hall is a well-established not-for-profit organization exempt under IRC section 501(c)(3) that owns a debt-financed facility that is home to the local symphony
Information from the 2018 Form 990 and the 2019 audited financial statements for Feeding America follows. Although Form 990 indicates it is for 2018, it is actually for the period July 1, 2018, to
Following is the June 30, 2022, statement of net position for the City of Bay Lake Water Utility Fund. Requireda. For fiscal year 2023, prepare general journal entries for the Water Utility Fund
Identify different types of custodial funds and explain the purpose of each.
Identify different types of trust funds and explain the purpose of each.
Discuss the difference between an external investment pool and an investment trust fund, including how the activities of each would be reported.
Compare a private-purpose trust fund to a governmental permanent fund.
How are the employer’s pension expenditures and the employer’s pension expenses calculated?
Explain the Internal Revenue Code Sec. 148 rule on arbitrage.
A common type of custodial fund is the tax custodial fund. To gain a better understanding of the operation of a tax custodial fund, visit the Miami-Dade County Tax Collector website at
As dis-cussed in the textbook, there are a variety of custodial and trust funds that can be reported by state and local governments. To provide an indication of the various purposes for which
Choose the best answer. Items 1 through 5 relate to the following information:The county collects taxes on behalf of the county, city, and a special purpose district. For 2023, the taxes to be levied
Choose the best answer.1. Which of the following is needed for a fiduciary relationship to exist?a. The assets are controlled by outside entities.b. The assets are derived from the reporting
The Albertville City Council decided to pool the investments of its General Fund with Albertville Schools and Richwood Township in an investment pool to be managed by the city. Each of the pool
The following are the trial balances for the fiduciary funds administered by the City of Mariville as of its year-end June 30, 2023. The net position amounts provided are as of the beginning of the
How does a primary government know if it is financially accountable for another entity?
What are the components of a CAFR?
Are major funds and major component units determined in the same manner? Explain your answer.
What is IPSASB, and what is its purpose?
The MD&A for the 2019 City and County of Denver CAFR is included as Appendix B in this chapter. Following are two tables that have been adapted from the statistical section of the CAFR. Use the
What is XBRL, and why is there an interest in its use by state and local governments?
Following is the governmental activities preclosing trial balance for the Town of Freaz. Freaz is a relatively small town and, as a result, it has only governmental funds (i.e., it uses no
The Village of Rodale keeps its governmental fund accounting records on a modified accrual basis. At the end of the fiscal year, the village accountant must convert the modified accrual information
Explain the difference between financial position and economic condition.
Why is it important to evaluate a government’s financial performance?

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