Encumbrances and other transactions Flashcards
(12 cards)
What is JE of when purchase orders approved?
Dr. Encumbrances
Cr. Budgetary control
What is JE upon receiving of invoices?
Reverse the estimated purchases orders:
Dr. Budgetary orders
Cr. Encumbrances
What is JE when actual expenditures incurred?
Dr. Expenditures
Cr. Vouchers payable (or cash)
What is formula to calculate remaining appropriations (budgetary) at year end?
B-A-E
Budgeted: appropriations - Activity: expenditures - Encumbrances
what is interfund transfers?
It is other financing sources, which has the same effect on financial statements of general, proprietary, and fiduciary funds. Do NOT net due to/from accounts
what is the difference b/w reciprocal and nonreciprocal interfund?
- Reciprocal (given in return) interfunds: includes interfund loans and services provided and used
- Nonreciprocal (purely transfer) interfunds: includes interfund transfers and interfund reimbursements (not on the face of FS)
what is restricted fund balance?
represent resources whose use has been limited/restricted by external sources such as creditors, contributors, other governments, laws, constitutional provisions, or enabling legislation
what is assigned fund balances?
are constrained by government’s intent to be used for specific purpose but not restricted or committed
what is committed fund balances?
represents that can ONLY be used for specific purposes pursuant by constraint imposed by formal action of government’s highest level of decision making authority
what is non-spendable fund balances?
represents resources inform that cannot be spent (prepaid expenditures, inventories) or contractually or legally required to maintain whole (permanent fund principal)
what is the term used to identify the equity section of FS in proprietary fund?
net position
what is the term used to identify the equity section of FS in governmental fund?
fund balance
