Chapter 4 Vocab

Question 1

q) See Derived Tax Revenues, Imposed Nonexchange Revenues, Voluntary Non exchange Transactions, and Government Mandated Nonexchange Transactions.

Answer 1

nonexchange revenue

Question 2

e) A method of recording supplies as Expenditures when purchased. If inventory levels have risen at the end of the month, the asset Supplies Inventory is debited and Fund Balance—Reserve for Inventory is credited. An alternative method is called the consumption method.

Answer 2

purchase method

Question 3

i) A trust fund (q.v.) that will ordinarily revert to private individuals or will be used for private purposes, for example, a fund that consists of guarantee deposits.

Answer 3

private trust fund

Question 4

c) A category of nonexchange transactions, such as certain education, social welfare, and transportation services, mandated and funded by a higher level of government.

Answer 4

government mandated non exchange transaction

Question 5

v) Transactions that occur between two governmental funds (or between a governmental fund and an internal service fund) or between two enterprise funds.

Answer 5

intra activity transaction

Question 6

s) Specified characteristics that program recipients must possess or reimbursement provisions and contingencies tied to required actions by the recipient.

Answer 6

eligibility requirements

Question 7

r) Specifications by resource providers of the purposes for which resources are required to be used.

Answer 7

purpose restrictions

Question 8

a) A category of nonexchange revenue, such as property taxes and most fines and forfeitures.

Answer 8

imposed non exchange revenue

Question 9

n) Loans made by one fund to another.

Answer 9

interfund loans

Question 10

j) Amounts transferred from one fund to another.

Answer 10

interfund transfer

Question 11

p) Restrictions that relate to the period when resources are required to be used or when use may begin.

Answer 11

time requirements

Question 12

u) Transactions in which the donor derives no direct tangible benefits from the recipient agency, for example, a contribution to or support for a government or not for profit organization.

Answer 12

nonexchange transactions

Question 13

g) A transaction in which each party receives direct tangible benefits commensurate with the resources provided, for example, sales between a buyer and a seller.

Answer 13

exchange transaction

Question 14

h) A transaction in which the values exchanged, though related, may not be quite equal or in which the direct benefits may not be exclusively for the parties to the transaction, unlike a “pure” exchange transaction.

Answer 14

exchange like transaction

Question 15

o) Note (sometimes called warrant) issued in anticipation of collection of taxes usually retirable only from tax collections and frequently only from the proceeds of the tax levy whose collection they anticipate

Answer 15

tax anticipation note

Question 16

m) Interfund loans or transfers that occur between a governmental fund (or internal service fund) and an enterprise fund.
n) Loans made by one fund to another.

Answer 16

inter activity transactions

Question 17

k) An account reported on the government wide statement of net position with a debit or credit balance, which represents activity between the governmental funds and enterprise funds (business type activities). Amounts receivable by governmental activities from business type activities are reported as an asset by governmental activities and as a contra-asset by business type activities.

Answer 17

internal balances

Question 18

f) A method of recording supplies as inventory when purchased and as expenditures when used or consumed. The alternative method is called the purchases method.

Answer 18

consumption method

Question 19

t) Taxes remaining unpaid on and after the date on which a penalty for nonpayment is attached. Even though the penalty may be subsequently waived and a portion of the taxes may be abated or canceled, the unpaid balances continue to be delinquent taxes until abated, canceled, paid, or converted into tax liens. Note: The term is sometimes limited to taxes levied for the fiscal period or periods preceding the current one, but such usage is not entirely correct.

Answer 19

delinquent taxes

Question 20

d) A classification of nonexchange transactions, such as income or sales taxes.

Answer 20

derived tax revenues

Question 21

b) A category of nonexchange transaction that includes certain grants and entitlements and most donations.

Answer 21

voluntary non exchange transactions

Question 22

l) Contributions received under a trust agreement in which the investment income or an endowment must be used to benefit a public program or function or the citizenry.

Answer 22

public purpose trust fund

Question 23

w) A contribution made by a tax-exempt property holder to compensate government for the value of government services provided (e.g., police and fire protection).

Answer 23

payment in lieu of taxes

Question 24

x) Funds used to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs—that is, for the benefit of the government or its citizenry. Permanent funds do not include private purpose trust funds, which should be used to report situations in which the government is required to use the principal or earnings for the benefit of individuals, private organizations, or other governments.

Answer 24

permanent fund