Government Accounting Flashcards
What is the PRIMARY objective of Gov’t Acct?
Wide range of Useful and Beneficial information:
- Costs of services provided
- Sufficiency of revenues to cover costs
- Financial position of entity
What are the 3 MAJOR TYPE of funds in Gov’t Acct?
- Governmental
- Proprietary
- Fiduciary
Which 2 accounting BASES are used in Gov’t Acct?
- Accrual Basis - current economic resources focus (revenues recognized when earned)
- Modified Accrual Basis - current financial resources focus (revenues recognized when available & measurable)
What is a BUDGET APPROPRIATION?
The highest amount allowed for a particular expenditure under a budget.
What is an ENCUMBRANCE?
Records purchase & reserves it for the encumbrance
What is the OPENING budgetary entry?
Dr. Estimated Revenues Control
Cr. Appropriations Control
Plug whichever side to balance:
Dr./Cr Budgetary Fund Balance
What is the CLOSING budgetary entry?
Dr. Appropriations Control
Cr. Estimated Revenues Control
Plug whichever side to balance:
Dr/Cr Budgetary Fund Balance
What are the types of governmental FUNDS
General Fund Special Revenue Fund Permanent Fund Capital Projects Fund Debt Service Fund
What is a General Fund?
The operating fund of the gov’t unit which:
Records significant revenues: taxes, tickets, fines, licenses and
Records significant expenditures: police, education, fire dept.
What is a Special Revenue Fund
Restricted for a specific purpose such as street repair
What is a Permanent Fund?
Legally restricted fund where only earnings can be used to fund programs. Principal remains intact
What is a Capital Projects Fund?
Used to acquire and build facilities
What is a Debt Service Fund?
Handles repayment of long-term debt and related interest.
Which fund statements are issued in Gov’t Acct?
Balance Sheet
Statement of Revenues
Expenditures
Changes in Fund Balance
When is Revenue recorded in Gov’t Acct?
When it is BOTH available & measurable; regardless of when it is spent
What is Derived Tax Revenue?
Money collected from people doing things: sales tax (buying car) or income tax (people working)
What is Imposed Tax Revenue?
Tax assessed just because things exist. Ex: property tax on a car; real estate tax. Recorded as a revenue when BUDGETED. Estimated uncollectible property tax revenues don’t offset revenues, so DON’T NET THEM.
What are the TYPES of Proprietary Funds?
Internal Service Funds - to serve the needs of other gov’t unit (motor pool)
Enterprise Funds - provide goods or services to external users (post office)
What are the Fund Balance TYPES?
Restricted - restricted by Contributor
Committed - restricted by Gov’t Assigned (intended for a purpose)
Unassigned - available to be spent
Non-Spendable - not in a spendable state
What are the TYPES of Fiduciary Funds?
Agency Fund - gov’t acts as an agent or custodian
Pension Trust Fund - gov’t is a trustee for a pension plan
Investment Trust Fund - gov’t is a trustee over a series of investment
Private Purpose Trust - trust that benefits various individuals & entities
How are Assets & Liabilities presented on the Statement of Net Position?
Assets: Current & Non Current
Deferred Outflows or Resources Liabilities: Current & Non Current
Deferred Inflows of Resources
How are Capital Assets shown on a gov’t Statement of Net Assets?
As Net of Debt. Asset Cost - Acc. Dep. - Asset Liabilities = Net Assets
How is the infrastructure reported on a gov’t Statement of Net Assets?
Modified approach: Reported at cost; no accumulated depreciation.
How is a Statement of Net Assets divided?
Into Governmental Activities & Business Activities
