What are the revenue recognition criteria under modified accrual accounting?
- Can be reasonably estimated
- Susceptible to accrual
What is the measurement focus basis of accounting for governmental fund types?
Flow of current expendable financial resources.
What is the measurement focus basis of accounting for proprietary fund types?
Flow of economic resources.
Which of the following governmental funds use the modified cash basis of accounting?
In the government acronym (DRIP CEG), the consonants use modified accrual.
- Debit Service Funds
- Special Revenue Funds
- Permanent Funds
- Capital Project Funds
- General Funds
What is the primary measurement focus for governmental fund types?
Focus on the flows and balances of financial resources
What is the measurement focus on proprietary funds?
The accrual basis of accounting is used, and the measurement focus is on
- Income determination
- Financial position
- Cash flow
(GASB Codification 1300.102).
How should a city's general fund report the acquisition of a new police car in its governmental fund statement of revenues, expenditures and changes in fund balances?
the new police car (a long-term asset) is recorded as an expenditure in the period of acquisition because it represents an outflow of financial resources. Since it is an immediate expenditure, the General Fund does not list the car as a noncurrent asset.
However, the police car will be listed as a noncurrent asset in the statement of financial position.
What is the Expenditure Control Account?
- The Expenditures control account is a temporary account that must be closed at the end of the fiscal year.
- The Expenditures control account is debited as resources are expended during the year.
- When the books are closed at the end of the year, this account should be CREDITED so that the balance is ZERO.
Dayne County's general fund had the following disbursements during the year:
- Payment of principal on long-term debt$100,000
- Payments to vendors500,000
- Purchase of a computer300,000
What amount should Dayne County report as expenditures in its governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances?
- On the Statement of Revenues, Expenditures, and Changes in Fund Balances, which reports transactions using the modified accrual basis of accounting,
- repayment of principal on long-term debt
- payments to vendors
- purchases of fixed assets
All reported as expenditures.
What is the modified accrual basis of accounting?
Revenues are recognized in the accounting period when they become available and measurable
What is accrual basis accounting?
Revenues and expenses are recognized in the period in which they are earned, incurred, and measurable.