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1) Proprietary funds record the net pension liability as a fund liability.
2) Unmatured principal installments and accrued interest which is due shortly after year
end are required to be reported as liabilities in the debt service fund at year end.
3) Internal Service funds are treated as governmental activities in the government-wide
statements if the principal customers are other departments within the General Fund.
4) Net resources of a governmental fund represented by currently due taxes receivable
is an example of a non spendable fund balance
5) When computing Unrelated Business Income Tax, charities are permitted to deduct
ordinary and necessary business related expenses and the first $1,000 of income is not
taxed.
6) The program expense ratio for a not-for-profit organization will improve if the
organization shifts costs from fund-raising to program expenses.
7) Budgetary accounts begin each year with a zero balance and are closed at the end of
each year.
8) If a bond sinking fund is required by creditors or law, the unexpended resources
would be classified as Restricted.
9) A Fair Exchange transaction is one in which a government gives or receives value
without directly receiving or giving equal value in exchange.
10) The
11) Agency fund assets are offset by liabilities equal in amount, so no fund equity
exists.
12) GASB Statement 35 extends the provisions of GASB Statement 34 to both public
and private colleges and universities.
13) Funds whose earnings benefit individuals, private organizations, or other
governments are reported in private-purpose trust funds.
14) Public colleges who waive fees for graduate assistants must report tuition income
net of the fees waived.
15) The
16) Government and Fiduciary fund statements use the modified accrual basis, while
government-wide, and proprietary funds use accrual basis.
17) Outstanding encumbrance of $80,000 for the purchase of furniture & fixtures is an
example of a restricted fund balance.
18) Expenditure classification by character includes current, capital outlay, and debt
service.
