Gov Accounting- Government Funds

Question 1

Primary Objective

Answer 1

Provide wide range of info that is useful and beneficial to users

Question 2

What is the authoritative guidance for gov accounting

Answer 2

GASB statements

Question 3

What is the non-authoritative guidance for gov accounting

Answer 3

GASB concepts

Question 4

What are the 3 fund types

Answer 4

1. Gov
2. Proprietary
3. Fiduciary

Question 5

What are the two types of fund accounting

Answer 5

1. Accrual basis

2. Modified accrual basis

Question 6

What is accrual basis

Answer 6

• current economic resource focused

- revenue recognized when earned

Question 7

What is modified accrual basis

Answer 7

• current financial resource focused

- rev recognized when available and measurable

Question 8

What are the two accounts used for budget estimates

Answer 8

1. appropriation

2. encumbrance

Question 9

What is an appropriation

Answer 9

• budget

- highest amount allowed for an expenditure

Question 10

What is an encumbrance

Answer 10

• budget

- records purchases and reserves them

Question 11

What is used to budget actuals

Answer 11

• expenditure

Question 12

What is an expenditure

Answer 12

The actual cost of something

Question 13

What is the opening budgetary entry

Answer 13

D: estimated revenue control
Cr: Appropriations control
Cr/D: Budgetary control

Question 14

What is the closing budgetary entry

Answer 14

D: Appropriations control
D/Cr: budgetary fund balance (plug)
Cr: estimated revenue control

Question 15

Describe government funds

Answer 15

MAC- GRaSPP
- modified 
- accrual 
-current focused 
Revenue recognized when available and measurable

Question 16

Name the 5 gov fund balance types

Answer 16

1. Restricted
2. Committed
3. Assigned
4. Unassigned
5. Non-spendable

Question 17

What is a restricted fund

Answer 17

Restricted by the contributor (strict)

Question 18

What is a committed fund?

Answer 18

Restricted by the government (less strict)

Question 19

What is an assigned fund

Answer 19

Intended for a purpose

Question 20

What is an unassigned fund

Answer 20

Available to be spent

Question 21

What is a non-spendable account

Answer 21

Not in a spendable state (inventory)

Question 22

What are the financial statements for gov accounting

Answer 22

1. balance sheet

2. Statement of revenues, expenditures, and changes in fund balance

Question 23

How is revenue recognized for government funds

Answer 23

1. it is available
2. it is measurable
   if yes, it’s revenue regardless of when it is spent

Question 24

what is derived tax revenue

Answer 24

collected from people doing things

Question 25

What is imposed tax revenue

Answer 25

assessed because things exist | i.e. property tax and car tax

Question 26

When is tax revenue recorded

Answer 26

when budgeted

Question 27

What are the 5 funds in the government funds?

Answer 27

1. General Fund 2. Special revenue fund 3. Debt Service Fund 4. permanent fund 5. capital projects fund

Question 28

What is the general fund

Answer 28

The operating fund of the government unit | Records significant revenues (taxes, tickets)

Question 29

What is the special revenue fund?

Answer 29

restricted for a specific purpose such as street repair

Question 30

What is the permanent fund

Answer 30

Legally restricted only earnings can be used to fund programs Principal remains intact

Question 31

What is the capital projects fund

Answer 31

used to acquire and build facilities

Question 32

What is the debt service fund

Answer 32

Handles repayment of long-term debt and related interest