Govermental( and not-for-profit) organization Flashcards
paramount objective of governmental accounting
It is designed to demonstrate the accountability of each organization for the stewawrdship of the resources in their care. They are focused on providing efficient and effective delivery of services with public resources. operational and fiscal accountability are important.
Government funds uses the accrual basis of accounting
Enterprise funds use the accrual basis of accounting and the economic resources measurement focus.
Three criteria of enterprise fund
- The activity is financed with debt that is secured SOLELY by a pledge of the net revenue from fees and charges.
- Laws and regulations require that the cost of providing services be recovered through FEES
- The pricing policies of the activity establish fees and charges designed to recover its costs
Contribution Revenue
the unrestricted pledge (even if it’s next year) and the cash gift (restricted). The $10,000 has a donor-imposed condition; the individual must die for the amount to be received. Therefore, it is not recognized
special revenue funds account for…
the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes
permanent fund would be accounted for by governmental fund
Contributed services should be recognized only when the services
(1) create or enhance nonfinancial assets
(2) require specialized skills, are provided by individuals possessing those skills, and would typically be purchased if not provided by donation
the property tax revenue should be equal to
the total taxes levied for the year less the estimate of uncollectible amounts
the amount of total revenues, gains, and other support that should be presented in the statement of operations.
the hospital revenue less the amount related to charity care, plus the net assets released from restrictions used for operations, and plus the other revenue
