Gov Accounting- Government Funds Flashcards
Primary Objective
Provide wide range of info that is useful and beneficial to users
What is the authoritative guidance for gov accounting
GASB statements
What is the non-authoritative guidance for gov accounting
GASB concepts
What are the 3 fund types
- Gov
- Proprietary
- Fiduciary
What are the two types of fund accounting
- Accrual basis
2. Modified accrual basis
What is accrual basis
- current economic resource focused
- revenue recognized when earned
What is modified accrual basis
- current financial resource focused
- rev recognized when available and measurable
What are the two accounts used for budget estimates
- appropriation
2. encumbrance
What is an appropriation
- budget
- highest amount allowed for an expenditure
What is an encumbrance
- budget
- records purchases and reserves them
What is used to budget actuals
- expenditure
What is an expenditure
The actual cost of something
What is the opening budgetary entry
D: estimated revenue control
Cr: Appropriations control
Cr/D: Budgetary control
What is the closing budgetary entry
D: Appropriations control
D/Cr: budgetary fund balance (plug)
Cr: estimated revenue control
Describe government funds
MAC- GRaSPP - modified - accrual -current focused Revenue recognized when available and measurable
Name the 5 gov fund balance types
- Restricted
- Committed
- Assigned
- Unassigned
- Non-spendable
What is a restricted fund
Restricted by the contributor (strict)
What is a committed fund?
Restricted by the government (less strict)
What is an assigned fund
Intended for a purpose
What is an unassigned fund
Available to be spent
What is a non-spendable account
Not in a spendable state (inventory)
What are the financial statements for gov accounting
- balance sheet
2. Statement of revenues, expenditures, and changes in fund balance
How is revenue recognized for government funds
- it is available
- it is measurable
if yes, it’s revenue regardless of when it is spent
what is derived tax revenue
collected from people doing things
What is imposed tax revenue
assessed because things exist
i.e. property tax and car tax
When is tax revenue recorded
when budgeted
What are the 5 funds in the government funds?
- General Fund
- Special revenue fund
- Debt Service Fund
- permanent fund
- capital projects fund
What is the general fund
The operating fund of the government unit
Records significant revenues (taxes, tickets)
What is the special revenue fund?
restricted for a specific purpose such as street repair
What is the permanent fund
Legally restricted
only earnings can be used to fund programs
Principal remains intact
What is the capital projects fund
used to acquire and build facilities
What is the debt service fund
Handles repayment of long-term debt and related interest
