government

Question 1

What are the governmental funds

Answer 1

1. General Fund
2. Special Revenue Fund
   3.Permanent Fund
   4 Capital Projects Fund
3. Debt Service Fund

Question 2

Difference between permanent funds and endowment funds

Answer 2

No difference - perm = gov
endowment = NFP

Question 3

Capital Projects Fund

Answer 3

used to build capital assets using bonds

Question 4

Special Revenue Fund

Answer 4

uses interest (income) and tax for financing

Question 5

Capital grants are expenditure driven…why?

Answer 5

The grant must spend the money first before recognizing the revenue - which is why the grant is initially recorded as a liability

Question 6

types of grants

Answer 6

restricted = deferred revenue
unrestricted = revenue

Question 7

debt service fund

Answer 7

1. think bond sinking fund
2. used for payment of interest and repayment on general long-term debt
3. The government must be responsible for the debt

Question 8

government funds:
1. Governmental (budgetary)
Modified accrual
Financial resources

Answer 8

5 funds:
1. General
2. Special revenue
3. Capital projects
4. Debt service
5. Permanent (endowment)

Question 9

Government funds:
2. Proprietary
Accrual
Economic

Answer 9

2 funds
1. Enterprise (runs like a reg business)
2. Internal (for inside the gov’t)

Question 10

Government funds:
3. Fiduciary
Accrual
Economic

Answer 10

4 funds
1. Pension trust
2. Investment trust (mult gov’t entities pooling)
3. Private purpose trust
4. Agency