F8 - Modified Accrual Accounting Flashcards
Derived (non-exchange) tax revenues represent:
Taxes imposed on or derived from exchange transactions such as commercial sales (sales tax)
Imposed non-exchange revenues include:
Property taxes and fines
Measurable is defined as ______________
Available is defined as ________________
A known amount
Collected during the period OR shortly thereafter (typically 60 days of period end)
Under Modified Accrual Accounting, the issuing of a purchase order (commitment to purchase) is recorded for internal bookkeeping as:
DR: Encumbrance
CR: Budgetary Control
A balanced budget demonstrates:
Interperiod equity
The revenues control account of a governmental unit is increased when:
Property taxes are recorded.
When property taxes are levied, the following journal entry is made:
DR: Property Taxes Receivable
CR: Allowance for uncollectible property taxes
CR: Revenues
The estimated revenues control account of a governmental unit is debited when:
The budget is recorded.
The entry to record the budget is:
DR: Estimated revenues control
CR: Budgetary control
Journal entry for when purchase order is issued:
DR: Encumbrances
CR: Budgetary Control
Journal entry for when the invoice/supplies are received:
DR: Budgetary Control
CR: Encumbrances
DR: Expenditures
CR: Vouchers Payable
Total fund balance =
Total assets less total liabilities
A budgetary control (open purchase orders) account balance in excess of a balance of encumbrances indicates:
A recording error
The estimated revenues control account balance of a governmental fund type is eliminated when:
The budgetary accounts are closed.
Journal entry to record budget when appropriations exceed the estimated revenues:
DR: Estimated Revenues
DR: Budgetary Control
CR: Appropriations Control
Journal entry to close the budget at the end of the year would be:
DR: Appropriations Control
CR: Estimated Revenues
CR: Budgetary Control
General Fund Balance Formula
"BAE" Budget: Appropriations $X,XXX Activity: Expenditures ($X,XXX) Encumbrances: ($XXX) = Available appropriations
Revenues include:
Property taxes, licenses, and intergovernmental revenues.
Transfers would be considered estimated other financing sources.
