Deck 22 Flashcards
(20 cards)
Long - term debt that is supposed to be retired within one year with common stock should be treated as what kind of liability?
Long-term liability (Current if retired with current liability)
Expendable trust:
Can spend everything in the trust
Examples of special revenue funds:
Sales tax, gasoline tax, special fees, admission fees, and parking fees
What two governmental funds do not use encumbrances?
Debt service fund and Permanent fund
Journal entry to record payment of interest under the debt service fund
Dr. Expenditure and Cr. cash
Journal entry to record payment of principal on bonds under the debt service fund
Dr. Expenditure and Cr. cash
Journal entry to record unrestricted gov’t grant
Dr. Cash and Cr. Revenue
Journal entry to record restricted gov’t grants (revenue when spent)
Dr. Cash and Cr. Revenue collected in advance
Journal entries to recognize revenue restricted by a cost reimbursement contract
Dr. Expenditure and Cr. vouchers payable; Dr. revenue collected in advance and Cr. Revenue
Journal entry to record capital lease equipment under gov’t accounting
Dr. Expenditures and Cr. Other financing sources
Earnings that will be used to benefit the public should be recorded in what governmental fund?
Permanent fund
Net Position (proprietary funds) displays three categories of equity (RUN):
Restricted, unrestricted, and net investment
Difference between fund balance and net position (gov’t accounting); what funds do they show up in?
Fund balance: shows up in GRaSPP Funds; Net position: proprietary funds (similar to equity and are shown in balance sheet)
Internal service fund vs. enterprise fund
Internal service: funds used for other departments; Enterprise fund: funds provided to the general public
Expense components for municipal landfills under enterprise funds:
Cost of equipment, cost of gas monitoring, and cost of final cover/capping
Two financial statements that are required for fiduciary funds:
Statement of fiduciary net position and statement of changes in fiduciary net position
Interfunds transfers are recorded as:
Other financing sources (uses)
Which of the three main types of funds requires the statements of cash flows?
Proprietary funds
When a government has/does not have monitoring, what fund is used?
Monitoring: Special revenue fund; No monitoring: agency fund
When a governmental unit has/does not have an obligation/liability, what fund is used?
Has obligations: Debt service fund; Not obligated: agency fund
