Financial Reporting - State & Local Governments Flashcards
What is the accounting basis used by state and local governments?
Modified Accrual
What is the definition of a fund (used by state and local governments)?
A separate acounting entity that performs specific activites or objectives and has a self-balancing set of accounts
When are revenues recognized by state and local governments?
Revenues are recognized in the period in which they become measureable and available to finance that period’s expenditures
“Available to finance” - resources are legally available in the period, collected in the period, or collected early enough in the next period to pay the liabilities of the period
“Early enough” - within 60 days of the following period
Who are the primary user groups of the external reports of state and local governments?
- Citizens who the government is accountable
- Legislative or oversite bodies
- Investors and creditors
What is the definition of a government entity?
- Body corporate or politic
- Power to enact and enforce a tax levy
What basis of accounting are government-wide financial statements presented?
Full accrual basis of accounting
When is an organization considered a government?
A controlling majority of its governing board are appointed by state government officials
What is a general fund?
(Government fund) accounts for the financial resources and activities not required to be accounted for in another fund
What is a special revenue fund?
(Government fund) accounts for and reports revenues restricted for specified purposes other than debt service and capital projects
What is a debt service fund?
(Government fund) accounts for the accumulation of resources to pay principal and interest payments on government debt
What is a capital project fund?
Government fund) accounts for and reports funds restricted to capital outlays
What is a permanent fund?
(Government fund) donations held in perpetuity with the income restricted to a specific purpose
What is an enterprise fund?
(Proprietary fund) accounts for operations that are financed similar to for-profit entities
What is an internal service fund?
(Proprietary fund) accounts for the financing of goods and services provided by one department of the government to other departments on a cost reimbursement basis
What is a pension trust fund?
(Fiduciary fund) accounts for resources held in a trust for government retirement plans
