Funds Flashcards
What are the 4 levels of constraints for a fund, from most constraint to no constraint?
Restricted
Committed
Assigned
Unassigned
What are the seven key elements of government financial statements?
Assets Liabilities Deferred outflow of resources Deferred inflow of resources Net position Outflow of resources Inflow of resources
Define “assets” as it pertains to government accounting:
Resources with present service capacity.
Define “liabilities” in government accounting:
Liabilities: present obligations to sacrifice resources.
What are “deferred inflow of resources”:
What is deferred inflow of resources similar to?
Deferred inflow of resources: the acquisition of net assets applicable to a future reporting period.
This is similar to unearned revenue.
Net position:
Net position: the residual of all elements presented in a statement of financial position.
Inflow of resources:
Inflow of resources: acquisition of net assets applicable to the reporting period.
What are the two key elements of government financial statements that relate to resource flows?
Inflow of resources
Outflow of resources
In modified accrual Accounting:
Assets + deferred outflows = liabilities + deferred inflows + ______
Assets + deferred outflows = liabilities + deferred inflows + fund balance
An important distinction:
In financial statements that are prepared on a full accrual basis, the residual amount is referred to as “___ ______”, in statements that are prepared on a modified accrual basis it is referred to as “______ _____”
Net position
Fund balance
What would be the journal entry for $1 of deferred outflow of resources?
This would be like a prepaid entry:
Credit: cash $1
Debit: deferred outflow of resources $1 (like a prepaid account)
