F9 Flashcards
Who is the main authoritative body for GAAP for governmental entities
GASB
What are the three accounting themes addressed by governmental accounting
fund structure
fund accounting
external reporting
Identify the major categories of funds used by state and local governmental units
governmental
propriteal
fiduciary
What are the fund accounting principles applicable to governmental funds
current fincanical resources measurement focus &
modified accrual basis of accounting
can you name each of the 5 governmental fund types
GRaSPP
General Fund special Revenue fund And Service (debt) fund Projects (capital) fund Permanent fund
What are the fund accounting principles applicable to proprietary funds? specifically the measurement focus and basis of accounting
Measurement focus: economic resources
basis of accounting: full accrual
Can you name the two types of proprietary funds (SE)
Internal Service funds
and
Enterprise funds
What are the fund accounting principles applicable to fiduciary funds? specifically the measurement focus and basis of accounting
Measurement focus: economic resources
basis of accounting: full accrual
Name each of the 4 fiduciary fund types
CIPPOE
Custodial funds
Investment trust funds
Private purpose trust fund
Pension and Other Employee benefit trust funds
What is modified accrual? and what funds use it
it's when revenues should be recognized when measureable and available; expenses are gernally recognized when the liability is incurred GRSPP uses it General Fund special Revenue fund debt Service fund capital Projects fund Permanent fund
What do the terms ‘measurable’ and ‘available’ mean in the context of the modified accrual basis of reveue accounting
measurable means quantifiable in monetary terms
available means collectible within 60 days of year end
Tell me the basic strcture of the statement of revenues, expenditures, and change sin fund balance for the governmental funds
Revenues
(expenditures)
+/- other financing sources and uses
=Net change in fund balance
What specialized accounting practices are followed by the governmental funds? this is also the order of the order of recording the journal entrys during the year and at end of year
BAE - BAE
Budgetary Accounting
Activity (actual) accounting
Encumbrance accounting
and then repeat it to close it out
Pwease tell me the journal entry to record the annual budget
DR: estimated revenues
CR: appropriations
CR: Budgetary control
When do you accrue/recognize real estate tax and fines/penalties
When billed/ recorded
When do you accrue/recognize income and state taxes
When received
When do you accrue/recognize revenue collected in advance, real estate tax paid in advance and restricted grants
when earned
tell me the journal entries to recognize the buying, use, and year end supplies remaining under the purchase method
purchase method:
Buying: DR: Expenditure CR: Vouchers Payable
Use: No Entry
End of year:
DR: supplies on hand inventory
CR: Nonspendable fund balance- inventory
Tell me the JE to recognize a Purchase order on supplies
DR: Encumbrance
CR: Budgetary control
What journal entries are recoreded when goods are received and the commitment to purchase those goods had been previously reocrded as an encumbrance
DR: expenditure
CR: Vouchers payable
DR: Budgetary control
CR: encumbrance
What are the budget , activity, and encumbrance journal entries at the beginning of year
This is just a sample, also everything is literally reversed at YE
Budget: DR: Estimated Revenue, DR: Budgetary Control (if negative/deficit) CR: Appropriations control, CR: Budgetary Control (if positive/surplus)
Activity: Number of activites to record for
Encumbrance: DR: Encumbrance, CR: budgetary control
When do you combine the activity, budget and encumbrance journal entries? What amount do you close the budget and activity? what amount do you reverse the encumbrance
NEVER COMBINE THEM
and
ALWAYS THE SAME AMOUNT
When do you post the activity, budget and encumbrance journal entries. as it pertains to beginning of the year, throughout the year, and year end
beg of year: book the budget
Throughout: book accruals and book ecumbrances
End of year: close out the budget, accrual, and encumbrances
List the two types of interfund transactions
Reciprocal interfund activity and non-reciprocal interfund activity.
What are two components to Reciprocal interfund activity
Interfund loans and Interfund services provided and used
What are two components to non-Reciprocal interfund activity
Interfund transfers and interfund reimbursements
What are the 5 classifications of fund balances used by governmental fund types
U NARC
Unassigned
Nonspendable
Assigned
Restricted
Committed
Identify the three components of net position displayed on government wide financial statements
Invested in capital assets (net)
Restricted (from external sources by category)
Unrestricted
What is the purpose of a general fund
it’s created at teh beginning of the governmental unit and exists throughout the life of the unit. this fund accounts for the general activities which are not accounted for in other funds
Waht are the typical revenue sources for a general fund
Taxes Public safety and regulations intergovernmental charged for service Interest
What are the required fund fincnaical statements for the individual governmental fund types (GRSPP)
they require a balance sheet and statement of revenues, expenditures, and changes in fund balances
What is the basic strucutre of the balance sheet for the governmental funds? think equation
CA + Deferred outflow of resources = CL + Deferred inflow of resources + fund balance
What is a special revenue fund and give examples of sources of revenue
its a fund where the revs/expense are legally restricted
examples: ton of taxes and fees and state/federal grants
What is the purpose of a debt service fund
it is designed to account for currently due interest and long term obligation debt
it will pay GRSPP debt but NOT SE CIPPOE debt
Whats the purpose of a capital projects fund
to account for restricted resources put toward capital projects such as leasing fixed assets relating to governmental (GRSPP) funds.
NOT RELATED TO proprietary (SE) or finducuiary (CIPPOE) funds
What are examples of revenues relating to capital projects funds
Investment earnings
tax revenues levied to fund capital improvement
capital gains
What is the purpose of a permanent fund
to report resources that are legally restricted to the extent which only earnings and not principal may be used for purposes that support the governments programs.
For Governmental funds, GRSPP. What portion of assets and liabilities do you report
ONLY current assets and liabilities
For Fiduciary and proprietary funds, SE CIPPOE. What do you report
EVERYTHING IS REPORTED
Does Governmental funds (GRSPP) follow modied or full accrual? What about SE Cippoe (proprietary and fiduciciary)
GRSPP = Modified Accrual
SE Cippoe = Full Accrual
There is another acronym which correlates to GRSPP, it is MAC, what is that
Modified
Accrual accounting
Current financial resource measurement focus
There is another acronym which correlates to SE Cippoe, it is SCARE, what is that
SE Cippoe Accrual accounting Record fixed assets and LTD (everything) Economic resource measurement focus
tell me the journal entries to recognize the buying, use, and year end supplies remaining under the consumption method
Buying: DR: Supplies inventory CR: Voucher payable
Use: DR: Expenditure CR: Supplies Inventory
Year End: None
When you buy a fixed asset as a government expenditure, what do you record? and is it depreciated or capitalized?
DR: Expenditure-CAPITAL OUTLAY
CR: Voucher payable (or cash)
and FUCK ASS NO ITS NOT CAPITALIZED or DEPRECIATED
WHAT EVEN IS AN ECUMBERANCE?
It’s an obligation to spend money, on an purchase order more specifically
When recording JE’s for booking and closing amounts do you do it for the same amount or different amounts due to changes
you close it for the same amount you booked it at, the other entry will represent the activity
The only fund that should show a positive amount in its unassigned fund balance is which fund
General fund
What kind of non exchange transaction are property taxes and fines?
Imposed non exchange revenues
What entry should be used by a governmental unit to record salaries and wages for a period?
DR: Expenditures-salaries and wages
CR: Salaries Payable
What entry should be used by a governmental unit to record appropriations for a period?
DR: Budgetary Control
CR: Appropriations
What entry should be used by a governmental unit to decrease the encumbrance account
DR: Budgetary Control
CR: Encumbrances
The modified accrual method (used with GRaSPP) is used with this type of resource measurement
the current financial resource measurement
The full accrual method (used with SE CIPPOE) is used with this type of resource measurement
economic resources measurement focus
What two governmental funds (GRaSPP) do not record encumbrances
Debt Service Fund
Permanent Fund
