12/5 Chapter 18

Question 1

general fund

Answer 1

all governments have a general fund

Question 2

revenue sources

Answer 2

tax

Question 3

redevelopment agency

Answer 3

certain resources are used in this to fund the redevelopments, raised by incremental property tax

Question 4

capital project fund

Answer 4

for each project there is a fund

Question 5

permanent fund

Answer 5

cemetery is an example, the principal is left alone

Question 6

proprietary funds

Answer 6

Enterprise Funds - trying to break even

Recreation fund

Question 7

18-2

Answer 7

summarizes the different types of fund, look at slides

Question 8

accrual method

Answer 8

method businesses use

Question 9

modified accrual method

Answer 9

they don’t keep capital assets and long term debt, it is mainly for short term, what we can spend we have to be able to get it within 60 days, deferred inflow of resources

Question 10

deferred outlfow

Answer 10

deferred charge, bond issuance cost, deferred loss

Question 11

government funds

Answer 11

have budgets

Question 12

general fund

Answer 12

all activities should be accounted for in the general fund unless specifically required by law or
the nature of the activities is proprietary
it is a catch all

Question 13

reserve in fund balance must be

Answer 13

kept at a 25% of all revenue level

Question 14

special revenue fund

Answer 14

purpose: to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specific purposes
with the exception of inflows for cap projects and expendable sources

Question 15

two statements in gov fund

Answer 15

balance sheet
the statement of revenues, expenditures, and changes in fund balance(operating statement)
net income is increase in fund balance

Question 16

capital project fund

Answer 16

to account for financial resources used for the acquisition or construction of major capital facilities
except of those financed by
proprietary fund, and
trust funds
a temporary fund related to an acquisition
at completion
the fund is closed
the cost is recorded as a capital asset in the GCA-GLTL general ledger
outflows - costs incurred during construction are charged to expenditures

Question 17

we don’t record

Answer 17

fixed assets or depreciation

Question 18

revenues

Answer 18

bond proceeds, etc

Question 19

debt service fund

Answer 19

to account for the servicing of debt initially recorded as a liability in the GCA-GLTL

Question 20

examples of general long term debt obligations

Answer 20

serial bonds
term bonds
special assessment bonds
notes and warrants
capital leases

Question 21

look at page 906 and 907

Answer 21

for calculations know it, on test maybe

Question 22

revenue
expenditures
fund balance

Answer 22

the financial statements

Question 23

major funds

Answer 23

listed in their own column

Question 24

proprietary fund statements

Answer 24

statement of net assets(balance sheet)
statement of cash flows
noncapital, and capital

…….

Question 25

internal service funds

Answer 25

to account for activities that provide services solely for governments