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66 Cards in this Set
- Front
- Back
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Is the reporting for the general fund and the special revenue fund identical |
yes |
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What is the primary use of the general fund |
report all resources not accounted for in other funds |
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What is the primary use of the special revenue fund |
established for restricted purposes other than capital outlay or debt |
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What is the financial accounting equation for the general and revenue fund |
FA + DO - RL - DI = FB |
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What is the Fund Balance |
Net Financial Assets - Related Liabilities |
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General Long-term Liability prior to maturity is paid from which account |
The General or Special Revenue Fund |
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What is the primary revenue source for SLG |
Property taxes |
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If an amount of tax receivable were not expected to be collected deferred revenues would be credited and recognized as revenues when they become available to pay? |
True |
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When is the new revenue approach used |
For proprietary funds and government wide reporting. |
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What would be the debit when equipment is ordered and salaries are accrued for the period |
Expenditure the credit would be voucher payable |
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Non reciprocal transactions include |
interfund reimbursements interfund transfers |
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Accounting for inter fund reimbursements require |
Removing and Recording |
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Due From's and transfer to's are usually receivables? |
True |
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Common examples of inter-fund transfers include |
1). General fund transfers to other funds to provide financing for debt, or capital projects 2). Special revenue fund to general fund to finance restricted expenditures 3). Enterprise fund transfers to other funds to help subsidize their operation |
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Two uses for other financing sources and uses account: |
interfund transfers activities conduct by external entities |
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How does gaap define inter-fund transfers |
Sales and Purchases of goods and services between funds for fair market value |
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interfund government transactions that are unpaid are either recorded as intferfund payable or interfund recievable |
yes |
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Providing special financing to one fund from another fund affects which accounts |
Due from fund X Cash X |
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Repayment of debt from one fund to another |
Cash X Due From |
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When the government borrows fund short term what accounts are affected |
Cash Short term notepayable |
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If principal is collected from short term external borrowing what accounts are affected |
Short term note payable Expensiture(interest) Cash |
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What are extrodinary items |
events that are unusual and infrequent |
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What are special items |
events that are within the control of management and unusual and infrequent |
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Entries aren't required until goods or services rendered so purchase orders doesn't constitute as a necessary event to journalize expenditure |
True |
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interest and penalties in the form of revenue that are collected but not accrued previously are credited as what? |
Revenue |
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How do you record a expenditure and a liability no recorded in a prior year |
Debit correction of prior year Credit Vouchers Payable |
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Governments should always review their accounts and make necessary;? |
revenue adjustments Expenditure adjustments |
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What is the difference between interest paid and interest accrued? |
interest paid = debit to cash interest accrued = debit interest recievable |
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What are the purpose of closing entries? |
Close operating accounts update fund balance Close revenue and subsidiary ledger |
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Why is the balancing important |
to determine the amount of financing and financial position for next year |
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How do you determine the fund balance |
FA + DO = RL + DI + FB |
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General fund and special revenue fund are budgeted and appropiated for over the course of years? |
False, annually |
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GASB requires what kind of presentation of fund balance? |
Hierarchical base don how difficult it is for government to modify constraints |
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What fund has no constraints on use |
unassigned fund balance |
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What are the 4 constrained funds, hierarchy matters |
Non spendable funds Restricted Committed Assigned |
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Characteristics of the non-spendable fund balance |
include amounts held in general inventory no matter if restricted, committed or assigned |
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What are the characteristics of the restricted fund balance. |
it is restricted by eternal parties, provision or legislations |
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What are the characteristics of the committed fund balance |
It eduals the assets committed for a purpose less liablilties and deferred inflows related to those committments. also includes outstanding orders or contract that would reduce unassigned fund balane |
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What are the characteristics of the assigned fund balance |
is the assests assigned for that purpose less liabilities and deferred inflows. it includes encumbrances outstanding not related to restricted fund balance |
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Finally, what are the charactersitics of the unassigned fund balance |
is the positive of negative residual of others funds |
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Advance to and advance from are used for what |
Long term loans |
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The budget for the government is established in what document |
U.S. constitution |
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What are the 3 primary function of governments |
1). They have the power to levy taxes 2). Provide services that are crucial to our well being 3). They perform checks and balance on the environment |
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What is budgeting |
Allocating scarce resources among limited demands |
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What are approved budgets |
management plans in both business and governments |
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Appropiations are what? |
legal authorizations to incurr expenses |
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Gasb basic principles for a budget are? |
1). annual budget adopted by every government unit 2). the accounting system provides the basis for budgetary control 3). Budgetary financial statements must be presented as financial statements for the general fund, special revenue fund |
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To maintain budgetary accountability |
1). Accounts maintain on a budgetary basis 2). Recorded encumbrances, althougth not reported on financial statements 3). Accounts established in the revenue subsidiary ledger and expenditure subsidiary ledger 4). inter fund transfer should be made in the general ledger account. |
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How does the adoption of a budget begin |
With legally adopted budget |
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When revision or increase in budgets change the increase or decrease is always closed when? |
at the end of the year |
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The revenue subsidiary ledger account contains what? |
Taxes Licenses intergovernmental Charges Fines and forfeits |
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Each revenue subledger contains what elements |
Date Estimated revenues(Debit) Revenues(CR) Balance |
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Again Encumbrances are? |
unfilled orders or unperformed contracts |
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How do you determine the balance of each expenditure ledge account? |
Appropriations - Expenditures - Encumbrances |
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Budget account does not affect what? |
Actual asset, deferred outflow, liability,deferred inflow, revenue or expenditure |
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How do you account for increased funds during the period |
Debit estimated Revenues Credit budgetary fund balance |
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For budgetary control orders placed need to be recorded what needs to be debited and credited |
Encumbrances Encumbrances Outstanding |
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When the order is places and executed from a encumbrances what do you debit and credit |
Reverse the entries and record an expenditure and voucher payable |
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Why are interim budgetary reports used |
help govern bodies monitor, evaluate and manage a governments operations |
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What is the encumbrances method |
Classifying encumbrances as expenditures and compare them to appropriation to determine accurate budgeting |
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A monthly budgeted revenue statement contains what titles? |
Revenues YTD Estimated revenues for the year Current year Prior year |
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Interim Expenditure Statements include what titles? |
Expenditures Encumbrances Total Annual Appropriations Unencumbered Balance |
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Allotment Account are used for what |
It allots appropriations to specific months and expensitures cannot be made against unalloted appropriations |
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The RSI alternative Budgetary Comparison Statement contains what title |
The budget original and final the actual The variance Over or under |
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budgeting involves 3 process? |
Planning Control Evaluation |
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Who is responsible for drafting tentative budgetary plans? |
Executive city or state council |
