[Biff-1955-Tannen]

Why are we counting a receivable as revenue?

Q # 1082

A capital projects fund for a new city courthouse recorded a receivable of $300,000 for a state grant for which all eligibility requirements have been met and a $450,000 transfer from the general fund. What amount should be reported as revenue by the capital projects fund?

AUD 93 Jan 16
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FAR 83 Apr 16
REG 84 May 16

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[monikernc]

because all the eligibility requirements have been met

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[MaLoTu]

So, what I recall (haven't studied since January), Governmental funds all have a current focus, which means there are no LT liabilities or LT assets.
However, there are 2 financial statements, the BS and the statement of revenues,expenditures, and changes in fund balance. Which means there are definitely revenues.
I suppose it would be calculated as revenues minus expenditures + other financing sources (from General) minus other financing uses (to general) = change in fund balance.
Not sure if any of that really answered your question …

What is the answer

[MaLoTu]

oh, I just re-read it … Governmental accounts are on modified accrual, revenue is recognized when measurable and available. The important thing is that the requirements were met for the grant, it is essentially counted at that point.

[Biff-1955-Tannen]

Thanks for the responses. That clears things up. Thank god for GASB. Accounting would be so much more difficult if we only had FASB

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[MaLoTu]

^exactly

[monikernc]

i had a great gov/nfp class and let me tell you, i would not have squeaked through far without it. almost a perfect score!

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[MaLoTu]

I have failed FAR twice but I always do good with GOV/NFP… I don't know why! I guess it would really be a gift if I got more GASB! Lol

[monikernc]

Knowing the fund types and their accounting equations and the financial stmts required for each made my little far wish come true.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Biff-1955-Tannen]

Knowing if something counts as revenue is one of my biggest problems with government. Is there any guidance out there that says what constitutes as revenue for different funds?

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[monikernc]

This little fact sheet may help and i think 2008 is ok.

https://tinyurl.com/h75lryv

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[MaLoTu]

Biff- do you have Becker? I feel like they did a great job with Gov/NFP …

[nib]

hello friends ,

please check my answer ,

in above mcq ,
300,000 grant is revenue .
450,000 is interfund transfer ,so it is not revenue ..

@MaLoTu , @ monikernc @ Biff-1955-Tannen

i am in journey through govt n npf chapters , so came across many questions . I am already posting them in far study group and in general topics . It seem you people have gain lot of knowledge in this area . So FRIENDS , pls help me .

[Biff-1955-Tannen]

@monikernc thanks for the link. That should definitely help with revenues for me.

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[Author]

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