F6 M6 Flashcards
Governmental Fund Structure and Fund Accounting
governmental funds use?
current financial resources measurement
modified accrual basis of accounting
proprietary and fiduciary funds use?
economic resources measurement
accrual basis of accounting
governmental funds mnemonic GRSPP
General Fund
Special Revenue Fund
Debt Service Fund
Capital Projects Fund
Permanent Fund
proprietary funds mnemonic SE
Internal Service Fund
Enterprise Fund
fiduciary funds mnemonic CIPPOE
Custodial Fund
Investment Trust
Private Purpose Trust
Pension Trust
and
Other Employee Benefit
when is revenue recognized under modified accrual?
when available and measurable
when is revenue recognized under accrual?
when available and earned
what is a general fund?
for ordinary operations of governmental unit financed from taxes and other revenues
what is a special revenue fund?
revenues from specific taxes or other resources restricted for use to finance activities
what is a debt service fund?
used for payment of interest and principal of debt
what is a capital projects fund?
resources restricted for construction of capital assets
what is a permanent fund?
restricted to the extent that only income can be used to support gov activities (not principal)
what is an internal service fund?
goods and services provided by departments to other departments within gov unit
what is an enterprise fund?
used for the acquisition and operation of gov facilities to support user charges (external customers)
when are enterprise funds required?
1) fund is financed by debt secured by pledge of fee revenue
2) laws require collection fees to recover costs
3) pricing policies established to produce fees to recover costs
what is a custodial fund?
resources in temporary custody of gov
what are investment trust funds?
for external investment pools
what are private purpose trust funds?
assets used to provide benefits to recipients with benefit terms and assets legally protected from creditors of gov
what is a pension and other employee benefit trust fund?
resources for defined benefit plans, defined contribution plans, post-employment benefit plans, and other LT employee benefit plans
the statement of revenues and expenditures reports?
resources received and consumed during current period
the balance sheet reports?
available resources and current obligations
income determination is a focus of…
proprietary and fiduciary funds
measurement focus of a government focuses on…
flow of current financial resources and resulting financial position
a local government unit can use both of what?
accrual and modified accrual accounting
government-wide financial statements are required to use?
accrual basis for both governmental activities and business type activities
governmental funds B/S
1) current assets + deferred outflows
2) current liabilities + deferred inflows of resources + fund balance
= total current liabilities, deferred inflows of resources, and fund balances
governmental funds statement of revenues, expenditures, and changes in fund balance
1) revenues
2) (expenditures)
3) other financing resources (uses)
= net change in fund balance
proprietary statement of net position
1) all assets + deferred outflows of resources
2) (all liabilities + deferred inflows of resources)
=net position
proprietary statement of revenues, expenses, and changes in fund net position
1) operating revenue
2) (operating expenses)
3) nonoperating revenue (expenses)
= change in net position
statement of fiduciary net position
1) all assets + deferred outflows of resources
2) (all liabilities + deferred inflows of resources)
= net position
statement of changes in fiduciary net position
1) additions
2) (deductions)
= change in net position
