Exam 2 Flashcards
Most significant fund for most state and local government. Used to account for financial resources for basic day-to-day activities of governments.
General Fund
Account for specific revenue sources that are restricted or committed to spending for specified purposes but not for debt service or capital projects.
Special Revenue Fund
What is the accounting basis for general and special revenue funds? (GF and SRF)
Modified Accrual basis
With modified accrual basis, revenue recognition is when revenue is ______ and ______.
Measurable
Available
With modified accrual basis, expenditure recognition is when…
Liability is incurred
Property taxes are required to be paid _____ or _____ a year.
Once
Twice
What are 3 forms of short-term financing?
- TAN
- BAN
- RAN
Reimbursement based grants where allowable costs must be incurred by a government as part of eligibility requirement.
Expenditure-driven grants
Recognize asset (Due from state government or Cash) and revenue when eligibility requirements are met.
Grant with purpose restriction, but no time requirement
Time restriction may exist which states that the resources must be expended in next fiscal year.
Grant with time requirements
Conceptually, views inventory as a financial asset.
Purchase - DR Supplies Inv., CR Cash/Voucher Pay.
Use - DR Expenditure, CR Supplies Inv.
Consumption Method for Inventory
Conceptually, views inventory NOT as a financial asset.
Purchase - DR Expenditures, CR Cash/Voucher Pay.
Closing if material amount of inventory exists - DR Supplies Inv., CR Nonspendable Fund Balance
Purchase method for Inventory
(Fund Balance) Amounts not available for appropriation because they are either not in spendable form or legally or contractually required to be maintained intact.
Nonspendable Fund Balance
(Fund Balance) Amounts can be used for no purpose other than specified in constitutional provision, enabling legislation, or contractual provision creating restraint.
Restricted Fund Balance
(Fund Balance) Amounts constrained as to use as a result of formal action (legislation, resolution, ordinance) of government’s highest level of decision-making authority.
Committed Fund Balance
(Fund Balance) Amounts constrained by government’s intent to spend resources for specified purposes. For all governmental funds except General Fund.
Assigned Fund Balance
(Fund Balance) Amounts available for spending for any legal purpose. Residual classification for General Fund.
Unassigned Fund Balance
A fund sells goods to or performs services for another fund for a price approximating their external exchange value.
Interfund Services Provided and Used
A fund provides cash or goods to another fund without equivalent flows of assets in return and without a requirement for repayment.
Interfund Transfers
A fund lends cash to another fund with a requirement for repayment.
Interfund Loans
A fund repays another fund for expenditures or expenses initially paid for by the other fund.
Interfund Reimbursements
Accounts for resources legally restricted such that only earnings, not principal, can be expended, and these earnings must benefit the government or its citizens.
Permanent Fund
Maximum possible term of 12 months or less including option to extend. Nonfinancial assets.
DR - Expenditures - ______
CR - Cash
Short-term Lease
Where a liability associates with the right to use capital asset, longer than 12 months. Includes PV of liability, payments include interest and principal payments.
Long-term Lease
