29 - Governmental Accounting Flashcards
Which two accounting bases are used in governmental accounting?
Accrual basis - Economic resources focus (revenues recognized when earned)
Modified accrual basis - Financial resources focus (current resources when measurable and available)
What are the three major types of funds in governmental accounting?
Governmental, Proprietary, Fiduciary
What is an appropriation?
Expenditures that are expected to occur in the period
What is an encumbrance?
An open order. A legal commitment, unlike an appropriation.
What are estimated other financial sources/uses?
Expected proceeds from issuance of L/T debt and operating transfers to/from other govt. departments
What are exchange transactions?
Goods/services/cash of equal value are exchanged
What are Non-Exchange transactions?
Transaction in which govt. receives/gives w/o directly reviewing/giving equal value in exchange.
Derived tax revenues
Imposed non-exchange transactions
Government-mandated
Voluntary non exchange transactions
What is Derived Tax Revenue?
Self-assessed on exchange transactions.
Sales tax (buying cars) or income tax (people working)
Revenue when occurs.
What are Government Mandated non-exchange transactions?
One level of govt provides funds to another level of govt (ex. Federal grant)
Revenue when eligibility requirements are met.
What is Imposed Tax Revenue?
Assessed on assets or rights of non-gov. No transaction occurred.
Example: property tax, real estate tax, fines
Revenue when use of money permitted and an asset when there’s legal claim.
What is a voluntary non-exchange transaction?
Transaction entered into willingly (unrestricted grant and voluntary donations)
Revenue when eligibility requirements are met.
What is the opening budgetary entry?
Dr Estimated Revenues
Cr Appropriations
Dr/Cr Budgetary Fund Balance (plug)
What is the closing budgetary entry?
Dr Appropriations
Dr/Cr Budgetary Fund Balance (plug)
Cr Estimated Revenues
What are the types of governmental funds (Modified Accrual)
General Fund Special Revenue Fund Permanent Fund Capital Projects Fund Debt Service Fund
PD-C-SG
What is a General Fund?
Junk Drawer
The operating fund of the governmental unit
Records Significant Revenues: Taxes; Tickets; Fines; Licenses
Records Significant Expenditures: Police; Education; Fire Dept
What is a Special Revenue Fund?
Earmarked sources. Restricted for a specific purpose.
Ex. gas tax for street repair.
What is a Permanent Fund?
Legally restricted fund; Where principal remains intact. Only earnings can be spent.
What is a Capital Projects Fund?
Major acquisition or constructions activities.
What is a Debt Service Fund?
Repayment of long-term debt and related interest.
What are the types of Proprietary Funds (Accrual)?
Internal Service Funds - to serve the needs of other governmental units (i.e. motor pool/IT/Maintenance)
Enterprise Funds - provide goods or services to external users (i.e. post office/public transport)
What are the Fund Balance Types?
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
What are the types of Fiduciary Funds?
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 (ex. Cigarette tax for cancer research)
Which fund statements are issued in Governmental Accounting?
Balance Sheet
Statement of Revenues; Expenditures; and Changes in Fund Balance
How are Assets and Liabilities presented on the Statement of Net Position?
Assets (Current and Non-Current)
Deferred Outflows of Resources
Liabilities (Current and Non-Current)
Deferred Inflows of Resources
