FAR 3 Flashcards
What does a derived (non exchange) tax revenue represent?
Taxes imposed on or derived from exchange transactions such as commercial sales (sales tax).
What are examples of imposed non-exchange revenues?
Property taxes
Fines
How do you record issuing a purchase order (commitment to purchase) in a governmental fund (modified accrual basis)?
Dr. Encumbrance
Cr. Budgetary Control
How do you calculate the remaining amount of funds available?
Appropriations
Less: Expenditures
Less: Encumbrances
What is an Encumbrance?
Commitments or assignments of the fund balance for purchase orders and represent a reduction of available appropriations.
What are appropriations?
A budgetary account that represents the governmental units approved spending.
How does the general fund record salaries and wages incurred during the month?
Dr. Expenditures-salaries
Cr. Salaries payable
A balanced budget demonstrates?
Interperiod Equity.
How do you record the JE when property taxes are levied?
Dr. Property taxes rec.
Cr. Alllowance for uncol.
Cr. Revenues
How do you record a JE when a purchase order is issued?
Dr. Encumbrances
Cr. Budgetary Control
The estimated revenues control account of a governmental unit is debited when?
The budget is recorded.
Dr. Estimated rev cont.
Cr. Budgetary Cont.
The expediture element “salaries and wages” is an example of which type of classification?
Object
Function classifications groups related activities that are?
Related to activities that are aimed at accomplishing a major service or regulatory responsibility.
What basiss of accounting does GASB recommend that governmental fund budgets be prepared?
Modified accrual.
When an asset is purchased by the gov’t and it is received, it should be recorded in the?
General Fund as an Expenditure
Dr. Expenditures
Cr. Vouchers Payable
Expenditures of a gov’t unit for insurance extending over more than one accounting period should be?
Allocated between or among accounting periods or may be accounted for as expenditures of the period of acquisition.
How do you record the issuance of the purchase orders and contracts?
Dr. Encumbrances
Cr. Budgetary Control
How do you record a budget?
Dr. Estimated Revenues
Cr. Appropriations
Cr. Budgetary Control
What are classified as estimated revenues?
Property Taxes, licenses, fines.
What are considered estimated other financing sources?
Proceeds of debt issue Interfund Transfer
How do you record the JE when supplies and invoice are received?
Dr. Budgetary Control
Cr. Encumbrances
Dr. Expenditures (actual)
Cr. Vouchers Payable
How do you record the entry when the purchase order was issued?
Dr. Encumbarances
Cr. Budgetary Control
How do you calculate the total fund balance?
Total assets-Tot Liabilities
Also, if appropriations do not lapse at year end, the remaining budgetary control (open purchase orders) must be reported as part of the committed or assigned portion of the fund balance.
An encumbrance account of a governmental unit is debited when?
A purchase order is approved.
