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Flashcards in Governmental Accounting Deck (43)
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1

What are the three major types of funds in governmental accounting?

Governmental, Proprietary, Fiduciary

2

Which two accounting bases are used in governmental accounting?

Accrual basis - current economic resources focus (revenues recognized when earned)

Modified accrual basis - current financial resources focus (revenues recognized when available and measurable)

3

What is a budget appropriation?

The highest amount allowed for a particular expenditure under a budget.

4

What is an encumbrance?

Records purchase and reserves it for the encumbrance.
Record when purchase order is approved

Encumbrances
Reserved for Encumbrance

5

What is the opening budgetary entry?

Dr Estimated Revenues Control
Cr Appropriations Control
Dr/Cr Budgetary Fund Balance (plug)

6

What is the closing budgetary entry?

Dr Appropriations Control
Dr/Cr Budgetary Fund Balance (plug)
Cr Estimated Revenues Control

7

What are the types of governmental funds?

General Fund - unassigned
Special Revenue Fund-restricted/committed
Permanent Fund -restricted, non expendable

Capital Projects Fund
Debt Service Fund
= both restricted, committed, assigned

8

What is a General Fund?

The operating fund of the governmental unit

Records Significant Revenues: Taxes; Tickets; Fines; Licenses

Records Significant Expenditures: Police; Education; Fire Dept

9

What is a Special Revenue Fund?

Restricted for a specific purpose such as street repair.

10

What is a Permanent Fund?

Legally restricted fund; where only earnings can be used to fund programs.

Principal remains intact.

11

What is a Capital Projects Fund?

Used to acquire and build facilities.

12

What is a Debt Service Fund?

Handles repayment of long-term debt and related interest.

13

Which fund statements are issued in Governmental Accounting?

Balance Sheet

Statement of Revenues; Expenditures; and Changes in Fund Balance

14

When is Revenue recorded in Governmental Accounting?

When it is BOTH available and measurable; regardless of when it is spent.

15

What is Derived Tax Revenue?

Money collected from people doing things:

Sales tax (buying cars) or income tax (people working)

16

What is Imposed Tax Revenue?

Tax assessed just because things exist

Example: property tax on a car (even if it's never driven); real estate tax

Recorded as a revenue when BUDGETED.

Estimated uncollectible property tax revenues don't offset revenues; so don't net them.

17

What are the types of Proprietary Funds?

Internal Service Funds - to serve the needs of other governmental units (i.e. motor pool)

Enterprise Funds - provide goods or services to external users (i.e. post office)

18

What are the Fund Balance Types?

Restricted - Restricted by Contributor
Committed - Restricted by Government
Assigned - Intended for a purpose
Unassigned - Available to be spent
Non-spendable - Not in a spendable state

19

What are the types of Fiduciary Funds?

Agency Fund - government acts as an agent or custodian

Pension Trust Fund - Government is a trustee for a pension plan

Investment Trust Fund - Government is a trustee over a series of investments

Private Purpose Trust - Trust that benefits various individuals and entities

20

How are Assets & Liabilities presented on the Statement of Net Position?

Assets (Current & Non-Current)
Deferred Outflows of Resources
Liabilities (Current & Non-Current)
Deferred Inflows of Resources

21

How are Capital Assets shown on a governmental Statement of Net Assets?

They are shown net of debt

Asset Cost - Accumulated Depreciation - Asset Liabilities : Net Assets

22

How is infrastructure reported on a governmental Statement of Net Assets?

Modified approach:

Reported at cost; no accumulated depreciation

23

How is a Statement of Net Assets divided?

Into Governmental Activities and Business Activities

24

How are activities presented in a Statement of Activities?

They are divided by function

If the activities of a component are distinguishable from the rest of the governmental entity; then discreet presentation is required

If the activities of the component cannot be identified and separated from the rest of the governmental activities; then blended presentation is warranted.

Component units are reported in the Entity-Wide Financial Statements and not the Fund Financial Statements.

25

What is the primary objective of governmental accounting?

To provide information that is useful and benefits a wide range of users including:

Costs of services provided

Sufficiency of revenues to cover costs

Financial position of entity

26

Government wide financial statements demonstrates

operational accountability
-how effective the organization was in using resources

27

Fund financial statements demonstrates

fiscal accountability
organization's compliance with rules and regulations on spending activities


28

Government Reporting Model

focuses on fiscal and operational accountability
fiscal - fund FS
operational - government wide FS

29

Basic governmental FS

1. MD & A
2. GOVERNMENT WIDE FS
Statement of Net Position
Statement of Activities
3. FUND FINANCIAL STATEMENTS:

1. Governmental(modified accrual)
Balance Sheet
Statement of Revenues, Expenditures and
Changes in Fund Balances
2. Proprietary (accrual)
Statement of Net Position
Statement of Revenues, Expenses and
Changes in Fund Net Position
3. Fiduciary Funds
Statement of Fiduciary Net Position
Statement of Changes in Fid. Net Position

4. NOTES TO FINANCIAL STATEMENTS
5. REQUIRED SUPPLEMENTARY INFORMATION
other than Management's Discussion and
Analysis

30

Required Supplementary Information

1. Ten year schedule of selected information
- for entities that provide pensions through
pension funds administered thru trust funds

2. Budgetary Comparison Schdule
3. Information about Infrastructure assets
4. Claims Development Information when the government sponsors a public entity risk pool

Other supplementary schedules (not mandatory)

CAFR