F9 Governmental Accounting Part 2 Flashcards
Encumbrances are…
commitments that have been made for future expenses, but the actual expense has not yet been incurred. Typically used to help manage budgets and avoid overspending.
Interfund transfers recorded as financing sources rather than revenue and are recorded as interfund transfer for proprietary funds. Transfers are not recorded as revenue or expenditures but will still effect the expendable funds’ resources and therefore will affect the results of operation of both funds. True or False?
True
Special revenue funds are non-spendable. True or False
True. (permanent fund principal)
a sales tax fund would be most likely classified under a:
1. sales tax receivable
2. other financing sources
3. sales tax revenue
4. due to general fund
- a due to general fund
What is the life of a capital project fund?
1-3 years
A fund set up to account for revenues from specific taxes or other earmarked sources that (by law) are restricted or committed to finance particular activities of government.
A Special Service Fund
A special revenue fund is set up for resources restricted, committed, or assigned for the acquisition or construction of major capital assets by a government unit, except those projects financed by an enterprise fund or by a special assessment.
A capital projects fund
A special revenue fund set up to account for the accumulation of resources and the payment of interest and principal on all “general obligation debt”
debt service fund
define: Assigned funds
internal - intention without formal committment
define: unassigned funds
no constraint on the use of funds
define: committed funds
internal - board established limits
define: restricted funds
external - donor requirements
define: non-spendable funds
practical - money is spent, not available or expiring
