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Flashcards in Governmental Accounting Deck (25):
1

Governmental, Proprietary, Fiduciary

Governmental Accounting

2

Accrual basis - current economic resources focus (revenues recognized when earned)

Modified accrual basis - current financial resources focus (revenues recognized when available and measurable)

Governmental Accounting

3

The highest amount allowed for a particular expenditure under a budget.

Governmental Accounting

4

Records purchase and reserves it for the encumbrance.

Governmental Accounting

5

Dr Estimated Revenues Control
Cr Appropriations Control
Dr/Cr Budgetary Fund Balance (plug)

Governmental Accounting

6

Dr Appropriations Control
Dr/Cr Budgetary Fund Balance (plug)
Cr Estimated Revenues Control

Governmental Accounting

7

General Fund
Special Revenue Fund
Permanent Fund
Capital Projects Fund
Debt Service Fund

Governmental Accounting

8

The operating fund of the governmental unit

Records Significant Revenues: Taxes; Tickets; Fines; Licenses

Records Significant Expenditures: Police; Education; Fire Dept

Governmental Accounting

9

Restricted for a specific purpose such as street repair.

Governmental Accounting

10

Legally restricted fund; where only earnings can be used to fund programs.

Principal remains intact.

Governmental Accounting

11

Used to acquire and build facilities.

Governmental Accounting

12

Handles repayment of long-term debt and related interest.

Governmental Accounting

13

Balance Sheet

Statement of Revenues; Expenditures; and Changes in Fund Balance

Governmental Accounting

14

When it is BOTH available and measurable; regardless of when it is spent.

Governmental Accounting

15

Money collected from people doing things:

Sales tax (buying cars) or income tax (people working)

Governmental Accounting

16

Tax assessed just because things exist

Example: property tax on a car (even if it's never driven); real estate tax

Recorded as a revenue when BUDGETED.

Estimated uncollectible property tax revenues don't offset revenues; so don't net them.

Governmental Accounting

17

Internal Service Funds - to serve the needs of other governmental units (i.e. motor pool)

Enterprise Funds - provide goods or services to external users (i.e. post office)

Governmental Accounting

18

Restricted - Restricted by Contributor
Committed - Restricted by Government
Assigned - Intended for a purpose
Unassigned - Available to be spent
Non-spendable - Not in a spendable state

Governmental Accounting

19

Agency Fund - government acts as an agent or custodian

Pension Trust Fund - Government is a trustee for a pension plan

Investment Trust Fund - Government is a trustee over a series of investments

Private Purpose Trust - Trust that benefits various individuals and entities

Governmental Accounting

20

Assets (Current & Non-Current)
Deferred Outflows of Resources
Liabilities (Current & Non-Current)
Deferred Inflows of Resources

Governmental Accounting

21

They are shown net of debt

Asset Cost - Accumulated Depreciation - Asset Liabilities : Net Assets

Governmental Accounting

22

Modified approach:

Reported at cost; no accumulated depreciation

Governmental Accounting

23

Into Governmental Activities and Business Activities

Governmental Accounting

24

They are divided by function

If the activities of a component are distinguishable from the rest of the governmental entity; then discreet presentation is required

If the activities of the component cannot be identified and separated from the rest of the governmental activities; then blended presentation is warranted.

Component units are reported in the Entity-Wide Financial Statements and not the Fund Financial Statements.

Governmental Accounting

25

To provide information that is useful and benefits a wide range of users including:

Costs of services provided

Sufficiency of revenues to cover costs

Financial position of entity

Governmental Accounting