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41 Cards in this Set
- Front
- Back
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What are the 5 types of general funds?
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Government, special revenue, capital project, debt service & permanent funds
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What are the 2 types of proprietary funds?
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enterprise funds and internal service
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What are the 4 types of fiduciary funds?
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pension trust, investment trust, private purpose trust & Agency
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What type of basis of accounting does govermental funds use?
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modified accrual
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What type of basis of accounting does proprietary funds use?
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accrual
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What type of basis of accounting fiduciary funds use?
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accrual
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What type of funds use budgets?
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Annual budgets fo estimated expenditures are prepared for most government funds. Proprieatry and fidciary funds and most capital project funds do are not dependent on annual budgets.
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What is the difference in JE for Revenues vs. Estimated Revuenues?
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Revenures CR
Estimated Revenues Debit |
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What funds is the encumberance system used?
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general, capital project and special revenue
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Governments accounts use both budgetary accts and reguars to...
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record approved budgetary estimates of revenues and expenditures (appropriations). Regular accts are sued to record actual revenues, expenditures and other transactions.
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How do expenditures differ from expenses?
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They include capital out lays for general fixed assets and repayment of long term debt principal
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When is a encumbrance entry made?
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when an item is order is make and the amount is estimatable. Some amounts are not encumbered such as salaries and wages.
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What happens to outstanding encumbrances at year end?
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They are carried forward as a reserve of fund balance with a cooresponding deduction of unreserved fund bal. The spending of a prior years outstanding encumbrances is a used of reserved fund balance, not a current expenditure
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When can revenues be recorded?
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They are recorded as received cash except for revenues susceptible to accrual and revenues of a materal amount that have not been receive at the normal time of receipt. Revenues are considered susceptible to accrual at the time they become measurable and available for use.
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What does available mean?
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Collected or collectable within the current period of early in the next. (60 days)
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What does restricted mean?
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Unrestricted grants shoudl be recognized imidiately as revenue of government funds. restricted grants shuld not be recognized until they are earned.
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What is the general fund used for?
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Used to account for and report all financial resources not accounted for and reported in another fund. Primarily consists of taxes (sales, income and excise) licenses, fines and interest.
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What are special revenue funds used for?
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Used to acct and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt serice or capital projects.
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More details about special revenue fund
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restricted revenues may be intially received in another fund ans subsequently distributed to a special revenue fund. Those amts should not be recognized as revenue in the fund initially receiving the, only the special revenue fund.
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More details about special revenue fund
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Special revenue funds shoudl not be used to account for resoruces held in trust for persons, private organizations and other governments. The deciding factors for use of this fund as opposed to enterprise fund is intent. If the intent is to recover less than 50% of expense form user fees then the activity is handed by special revenue fund. If bene's are citizens of reporting entity then special rev fund. If bene are individual, private org or other govt then private purpose trust fund
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What are capital project funds used for?
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to acct for and report financial resources that are restricted, committed or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities and other capital assets.
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What are debt service funds used for?
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tto acct for and report financial resources that are restricted, committed or assigned to expenditure for principal and interest.Budgetary encumberance and actual activity entries usually appear in this fund
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What are perminant funds used for?
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to acct for and report financial resources that are restricted to the extent that only earnings and not principal may be used for the purpose that support the reporting gov't programs. Budgetary encumberance and actual activity entries usually do not appear in this fund
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What are proprietary Funds used for?
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business like activities - similiar to private sector profit seeking businesses.
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Type of accting used for proprietary Funds?
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Rev and Exp are measured using the accrual. fixed assets and long term debt are recored as well as depreciation and interest.Contributed captial is not seperated from retained earnings.
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What are the two types of proprietary funds?
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Internal service and enterprise
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What is the internal service funds used for?
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used to account for in house business activities. to account for the financing of goods and sercies prived y one gov't departments or agency to another department on a cost allocatino basis. ex: motor pools, central repair shops, garages, data processing...
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Additional data on internal service fund
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supposed to break even annualy.charges from other groups are supposed to offset expenses. Initial capial to finanacne ISF may come from gneral fund
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Additional info on internal service fund
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only the fixed assets that are expected to be replaced through the ISF are recored therin and depreciated.
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What are enterprise funds used for?
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they must be used to account for a gov't business type operations that are financed and operated liek priviate businesses. the gov't intent is that ll costs of providing goods and services to general public on a continuing basis are to be financed or recovered primarilty through user charges.ie electric, gas water
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What are fiduciary funds used for?
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to account for a gov't stewardship responsibilities as an agent or trustee for other gov't funds, organizations or individuals.
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What are the 4 types of fiduciary funds?
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pension trust, investment trust, private purpose trust & agency funds
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What are the J/E's for a purchase order with an estimated cost of $5,000
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Debit - Encumberance control
Credit Reserve for encumberance |
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What are the J/E's when the invoice and goods are received
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Debit Reserve for encumberance
Credit encumberance control Debit expenditures (actual Credit Vouchers payable |
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A budgetartory fund balance reserved for encumberances in excess of bal of encumberances indates what?
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A recording error. The two accts should have the same balance
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What are the J/E's used to record salaries?
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Expenditures - Salaries
Salaries Payable |
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Under modified accrual basis of accting revenues should be reoconized in the accting period in which they
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become available and measurable.
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City of Walton issued Bond on Jan 2nd 2010. Interest is payable Jan 2 2011. What are the J/E's for accued interest in gov't fund?
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None. interest on LTD is accounted for in debt service fund, also interest is normally recorded on its due date rather than being accured prior
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When a purchase order is released the commitment should be recored in the GF by what J/E
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Encumberace
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When equipment is purchaed to be used by finance dept of GF is J/E recored as expenditure of capitalized?
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Expenditure
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Expenditures info
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they contain current operating expenditures that benefit a current period, but also capital outlays for fixed assets and repayment of general LTD principal
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