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Flashcards in G&NP Chapter 3 Deck (34)
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1
Q

General Fund

A

Used to account for and report all financial resources not accounted for or reported in another fund. The General Fund is established at the inception of a government and exists throughout the government’s life

2
Q

Special Revenue Funds

A

Established to account for general government financial resources that are raised from specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital outlay

3
Q

How are most financial resources of the General Fund and Special Revenue Funds expended

A

for current operating purposes such as salaries and supplies

4
Q

The General Fund and Special Revenue Funds are essentially

A

Net financial assets entities

5
Q

Fund Balance

A

Net Financial ASsets
fund financial assets (cash, investments, receivables and other financial assets) less any fund related liabilities and deferred inflows

6
Q

Property taxes receivable accrue…

A

when they are formally levied by the legislative body of the city

7
Q

Revenues that do not accrue or are not deemed sufficiently measurable to be accrued in the accounts prior to collection are…

A

debited to Cash and credited to Revenues when collected. Using the NET Revenue approach

8
Q

the purchase of equipment also affects the

A

General Capital Assets and General Long-Term Liabilities (GCA - CLTL) accounts

9
Q

Nonreciprocal transactions

A

interfund reimbursement

interfund transfers

10
Q

reciprocal transfactions

A

interfund loans

interfund services

11
Q

Interfund Reimbursements

A

nonreciprocal transactions in which a government determines that an expenditure or expense initially recorded in the current year in one fund should be accounted for and reported as an expenditure or expense in a different fund

12
Q

Accounting for interfund reimbursements requires

A

Removing the expenditure or expense from the accounts of the fund in which it was initially recorded
and
Recording the expenditure or expense in the reimbursing fund(s)

13
Q

Interfund Transfers

A

normally involve moving assets (such as cash or inventory) accounted for in one fund to another fund without a reciprocal flow of resources or services in return

14
Q

Interfund Transfers are reported in a special classification of changes in fund balance called

A

the Statement of Revenues, Expenditures, and Changes in Fund Balance

15
Q

Interfund Services

A

Sales and purchases of goods and services between funds for a price approximating their external market value

16
Q

Interfund Loans

A

loaning the resources of one fund to another fund with a requirement and expectation of repayment

17
Q

Extraordinary Items

A

a term used in both the FASB and GASB standards, transactions or events that are not within the control of management and are both unusual in nature and infrequent in occurence

18
Q

Special Items

A

within the control of management and either unusual or infrequent

19
Q

Revenue Adjustments

A

interest on investments
delinquent taxes
unbilled charges for services
unrestricted intergovernmental grants that have been earned and are available but have not been billed by year end

20
Q

Expenditure Adjustments

A

interest on short term debt

accrued payroll

21
Q

Purpose of the closing entries are to:

A

1) close the operating accounts in the general ledger so they will begin the next year with zero balances and update the fund balance account to it’s actual end of year balance
2) close the revenues subsidiary ledger and expenditures subsidiary ledger accounts so they are ready to record the next year’s detailed operating data

22
Q

Unassigned Fund Balance

A

the amount of governmental fund net assets with no constraints on their use

23
Q

Four Fund Balance Classifications

A

1) Nonspendable Fund Balance
2) Restricted Fund Balance
3) Committed Fund Balance
4) Assigned Fund Balance

24
Q

Nonpendable Fund Balance

A

Amounts held in inventories and prepaid assets. In the General Fund it also includes fund balances related to long-term receivables (and property acquired for resale) that do not have restrictions, commitments or assignments of the eventual proceeds.
NEVER be negative

25
Q

Restricted Fund Balance

A

assets restricted - by external parties, constitutional provisions, or enabling legislation - for expenditure for a specific purpose less liabilities and deferred inflows related to those restricted assets.
NEVER be negative

26
Q

Committed Fund Balance

A

Assets committed for a purpose less liabilities and deferred inflows related to those committed assets
NEVER be negative

27
Q

Assigned Fund Balance

A

Assets assigned for a purpose less liabilities and deferred inflows related to those assigned assets
can also include
encumbrances outstanding not related to already restricted, committed, or assigned fund balance
amounts to reflect the budgeted use of ending fund balance to finance an excess of appropriations over budgeted in flows in the next years budget
NEVER be netative

28
Q

Unassigned Fund Balance

A

the positive or negative residual amount of fund balance in excess of the other fund balance classifications

29
Q

Any noncurrent interfund receivable or payable should be recorded as…

A

advance to (fund) or advance from (fund)

30
Q

unmatured general obligation long-term liabilities are NOT recorded as liabilities of the General Fund but found in…

A

separate nonfund General Long Term Liabilities accounts

31
Q

Statement of Revenues, Expenditures, and Changes in Fund Balances

A

presents the revenues, expenditures and other increases and decreases in total fund balance during a year

32
Q

comparative financial statements or schedules

A

two or more periods
the cumulative effect of accounting changes or error corrections on fund balance for periods prior to the earliest period reported should be reported as a restatement of the beginning fund balance of that period and the data reported for later periods should be restated to reflect the changed accounting principle or error correction

33
Q

The function or program classification is the …

A

minimum amount of detail permitted in the basic financial statements

34
Q

The major accounting classifications of expenditures are

A

1) fund
2) function (program)
3) organization unit
4) activity
5) character
6) object class