8/12/16 Flashcards
What is a derived tax revenue?
A tax revenue from taxes imposed on or derived from exchange transactions such as commercial sales (sales taxes).
What helps demonstrate interperiod equity in governmental accounting?
A balanced budget is adopted. Interperiod equity helps users assess whether current year revenues are sufficient to pay for the services provided that year and whether future taxpayers will be required to assume burdens for services previously provided.
When is an encumbrance account debited?
When a purchase order is approved.
Which account is credited when taxpayers are billed for property taxes?
Revenues is credited and property taxes receivable are debited when taxpayers are billed. Revenues are recorded net of estimated uncollectibles.
When is the estimated revenues control account balance of a governmental fund type eliminated?
When the budgetary accounts are closed.
What is an imposed non-exchange revenue for a governmental entity?
Taxes imposed on non-exchange transactions such as fines or wealth (such as property taxes).
What is the format for the presentation of the statement of financial position for a fiduciary fund?
Assets and deferred outflows of resources minus liabilities and deferred inflows of resources equals net position.
What is the prescribed format for the presentation of the statement of financial position for a governmental fund?
Assets and deferred outflows of resources equals liabilities and deferred inflows of resources plus fund balance.
Adopted under IRC Sec. 457, where should deferred compensation plans be reported?
Pension (and other employee benefits) trust fund.
What should be reported in a private purpose fund?
Escheat property held for individuals, private organizations, or another government should be reported in a private purpose trust fund.
