Fund Structure and Fund Accounting (F9:M2)

Question 1

list the governmental funds.

what basis of accounting do they use?

what is their measurement focus?

Answer 1

general
special revenue
debt service
capital projects
permanent

modified accrual

CURRENT financial resources

Question 2

list the proprietary funds.

what basis of accounting do they use?

what is their measurement focus?

Answer 2

internal service
enterprise

full accrual

economic resources

Question 3

list the fiduciary funds.

what basis of accounting do they use?

what is their measurement focus?

Answer 3

pension trust
custodial
investment trust
private purpose trust

full accrual

economic resources

Question 4

under the modified accrual basis, when is revenue recognized?

how about under full accrual?

Answer 4

in the period when revenue becomes available and measurable

when the revenue is earned

Question 5

government-wide FS are presented using which basis of accounting?

Answer 5

full accrual

Question 6

what is the difference between the special revenue and permanent fund?

Answer 6

special revenue = expendable (both principal and interest can be expended)

permanent = nonexpendable (only the income can be spent, not the principal)