Governmental Accounting Flashcards Preview

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Flashcards in Governmental Accounting Deck (25):

Governmental, Proprietary, Fiduciary

Governmental Accounting


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


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

Governmental Accounting


Records purchase and reserves it for the encumbrance.

Governmental Accounting


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

Governmental Accounting


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

Governmental Accounting


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

Governmental Accounting


The operating fund of the governmental unit

Records Significant Revenues: Taxes; Tickets; Fines; Licenses

Records Significant Expenditures: Police; Education; Fire Dept

Governmental Accounting


Restricted for a specific purpose such as street repair.

Governmental Accounting


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

Principal remains intact.

Governmental Accounting


Used to acquire and build facilities.

Governmental Accounting


Handles repayment of long-term debt and related interest.

Governmental Accounting


Balance Sheet

Statement of Revenues; Expenditures; and Changes in Fund Balance

Governmental Accounting


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

Governmental Accounting


Money collected from people doing things:

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

Governmental Accounting


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


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


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


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


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

Governmental Accounting


They are shown net of debt

Asset Cost - Accumulated Depreciation - Asset Liabilities : Net Assets

Governmental Accounting


Modified approach:

Reported at cost; no accumulated depreciation

Governmental Accounting


Into Governmental Activities and Business Activities

Governmental Accounting


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


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