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29 Cards in this Set
- Front
- Back
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What are the three major types of funds in governmental accounting?
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Governmental, Proprietary, Fiduciary
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Which two accounting bases are used in governmental accounting?
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Accrual basis - current economic resources focus (revenues recognized when earned)
Modified accrual basis - current financial resources focus (revenues recognized when available and measurable) |
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What is a budget appropriation?
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The highest amount allowed for a particular expenditure under a budget.
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What is an encumbrance?
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Records purchase and reserves it for the encumbrance.
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What is the opening budgetary entry?
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Dr Estimated Revenues Control
Cr Appropriations Control Dr/Cr Budgetary Fund Balance (plug) |
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What is the closing budgetary entry?
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Dr Appropriations Control
Dr/Cr Budgetary Fund Balance (plug) Cr Estimated Revenues Control |
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What are the types of governmental funds?
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General Fund
Special Revenue Fund Permanent Fund Capital Projects Fund Debt Service Fund |
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What is a General Fund?
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The operating fund of the governmental unit
Records Significant Revenues: Taxes; Tickets; Fines; Licenses Records Significant Expenditures: Police; Education; Fire Dept |
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What is a Special Revenue Fund?
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Restricted for a specific purpose such as street repair.
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What is a Permanent Fund?
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Legally restricted fund; where only earnings can be used to fund programs.
Principal remains intact. |
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What is a Capital Projects Fund?
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Used to acquire and build facilities.
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What is a Debt Service Fund?
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Handles repayment of long-term debt and related interest.
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Which fund statements are issued in Governmental Accounting?
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Balance Sheet
Statement of Revenues; Expenditures; and Changes in Fund Balance |
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When is Revenue recorded in Governmental Accounting?
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When it is BOTH available and measurable; regardless of when it is spent.
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What is Derived Tax Revenue?
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Money collected from people doing things:
Sales tax (buying cars) or income tax (people working) |
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What is Imposed Tax Revenue?
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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. |
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What are the types of Proprietary Funds?
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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) |
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What are the Fund Balance Types?
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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 |
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What are the types of Fiduciary Funds?
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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 |
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How are Assets & Liabilities presented on the Statement of Net Position?
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Assets (Current & Non-Current)
Deferred Outflows of Resources Liabilities (Current & Non-Current) Deferred Inflows of Resources |
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How are Capital Assets shown on a governmental Statement of Net Assets?
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They are shown net of debt
Asset Cost - Accumulated Depreciation - Asset Liabilities : Net Assets |
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How is infrastructure reported on a governmental Statement of Net Assets?
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Modified approach:
Reported at cost; no accumulated depreciation |
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How is a Statement of Net Assets divided?
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Into Governmental Activities and Business Activities
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How are activities presented in a Statement of Activities?
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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. |
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What is the primary objective of governmental accounting?
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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 |
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What Financial Statements are required for Defined Benefit Pension plans?
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Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position
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What are the components of the Statement of Fiduciary Net Position for Defined Benefit Pension Plans?
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Assets; Deferred Outfows; Liabilities; Deferred Outflows; Fiduciary Net Position
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What are the components of the Statement of Changes in Fiduciary Net Position for Defined Benefit Pension plans?
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Additions (Contributions and Net Investment Income) - Deductions (Benefits Payments and Admin Expense) : Net Change in Fiduciary Net Position
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What should be included in the Financial Statement notes for Defined Benefit Pension Plans?
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Types of Benefits; Plan Member Classes; Board Information; Investment Policies and FV Determination
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