F8 - Governmental Accounting - Overview Flashcards
What may lead to the use of fund accounting by a governmental organization?
Financial Control and Legal Restrictions.
Separate fund financial statements should be presented for governmental and proprietary funds to:
Report additional and detailed information about the primary government.
Which fund uses the current financial resources measurement focus and modified accrual basis of accounting in their fund financial statements?
Governmental.
What funds use the economic resources measurement focus and accrual basis of accounting?
Proprietary and fiduciary.
Governmental funds consist of:
GRaSPP "G"eneral Fund special "R"evenue Fund "a"nd debt "S"ervice Funds capital "P"rojects Funds "P"ermanent Fund
Proprietary funds consist of:
SE
internal “S”ervice Funds
“E”nterprise Funds
Fiduciary (Trust) Funds consist of:
PAPI "P"ension (and other Employee Benefit) Trust Funds "A"gency Trust Funds "P"rivate Purpose Trust Funds "I"nvestment Trust Funds
Overview of Governmental, Proprietary, and Fiduciary Funds
MAC - GRaSPP "M"odified "A"ccrual accounting "C"urrent financial resources measurement focus GRaSPP
Proprietary and fiduciary funds have "SPACE" SE PAPI "A"ccrual accounting "C"arry fixed asset and long-term debt "E"conomic resources measurement focus.
Which funds of a governmental unit recognize revenues only in the accounting period in which they become available and measurable in their fund financial statements?
Governmental Funds (GRaSPP)
The only fund that should show a positive amount in its unassigned fund balance classification would be the:
General Fund
Non-spendable fund balances represent:
Resources in a form that cannot be spent (inventories, prepaid expenses, etc.) or are legally or contractually required to remain whole.
If expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes, it may be necessary to:
Report a negative unassigned fund balance.
