Government Accounting Flashcards
GASB concepts statement #1 lists the which three groups as primary users of financial statements?
CitizenryInvestors and creditorsLegislative and oversight bodies
Internal Service Fund definition
Internal Service Funds are established to finance and account for services and commodities furnished by a designated agency of a governmental unit to other departments of the same governmental unit.
Capital Projects Fund purpose
Accounts for the purchase or construction of major capital facilities.
Encumbrance
Encumbrance are recorded obligations for in performed contracts for goods and services.
Modified Accrual Basis definition
Part cash and Part accrualModified Accrual is used by the five governmental funds.
Proprietary Funds
Business-type activities run by the government and supported by user charge.
Fund Accounting definition
Each fund is a separate accounting entity and all the funds taken together make up the government’s financial reporting system.
Current resources management focus (introduced by GASB 34)
Focused on short-term results and is used in areas where the focus is on measuring current financial resources such as cash, investments and receivables and the current claims against them. Theses areas do not report buildings, equipment or long-term debt because they do not gave a direct impact on current financial resources.
Government-wide financial statement purpose?
Government-wide financial statements provide an overall entity perspective and include information about the long-term stewardship of governmental resources.
Governmental Accounting Standards Board (GASB)
Is the public sector equivalent to the FASB
Enterprise Fund definition
The Enterprise Fund is used to account for financing of self-supporting enterprises which render public service.
Special Revenue Fund purpose
Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources.
In Governmental Accounting, the General Funds accounts for what?
The General Funds account for all revenues and expenditures of a governmental unit which are not accounted for in other funds.
Name four types of Fiduciary Funds
Investment Trust FundsPrivate-Purpose Trust FundsPensions Trust Fund AccountsAgency Funds
Five types of Governmental Funds
General FundSpecial Revenue FundsCapital Projects FundsDebt Service FundsPermanent Funds
Governmental-wide Financial Statement
Will have a longer-term focus because they will report “all revenues and all costs of providing services each year, not just those received or paid in the current year or soon after year-end.”
GASB 33 classified all such non-exchange transactions into which fourdistinct classifications?
Derived tax revenuesImposed non-exchange revenuesGovernment-mandated non-exchange transactionsVoluntary non-exchange transactions.
Interperiod Equity
Financial resources received by a government during a period should suffice to pay for the devices provided during that period. Moreover, debt should be repaid during the probable period of usefulness of the assets acquired.
Is a reconciliation of the fund financial statements required?
A reconciliation of the fund financial statements to the government-wide statements is also required. This reconciliation must be presented at the bottom of the fine statements or in an accompanying schedule.
Definition of Government Accounting
Government Accounting is the accounting for state and local government.
GASB No.6 effect on the Special Assessment Fund
GASB No. 6 eliminated the Special Assessment Fund for financial reporting purposes and requires that these special assessments are accounted for in the Capital Projects Fund.
Why are operating transfers used in governmental accounting?
Operating transfers are often made to provide financing for the broad range of government activities.
Under the modified accrual basis, expenditures are generally recognized when?
Expenditures are generally recognized on the accrual basis. The exceptions are interest and long-term debt. Interest and long-term debt payments are not accrued but are recognized when due.
Fiduciary Funds
Assets that are held in a trustee capacity for external parties and the funds cannot be used to support the government’s own programs.
Governmental Funds
Account for activities primarily designed to serve the public and are generally financed through taxes.
Fund-based Financial Statements
Shows restrictions on the planned use of resources or to measure, in the short term, the revenues and expenditures arising from certain activities.
GASB Statement 33 purpose
Provides a comprehensive system for recognizing the wide array of revenues applicable to state and local government units.
Goal of Governmental Accounting
The goal of making the government accountable to the public is the one goal that has been constant over the years.
Fund Based Financial Statement Focus
The focus of government and proprietary fund financial statements is on major funds (but major fund reporting is not required for the internal services funds).
Debt Service Fund Function
The function of this fund is to accumulate resources for the payment of principal and interest on general obligation long-term debt.
Why are interfund transactions used?
Interfund transactions are used within most government units as a means of directing sufficient resources to all activities and functions.
Under the modified accrual basis, revenues are recognized when?
Revenues are recognized by the expendable funds when they are both “measurable and available.”
Name the two types of Proprietary Funds
Enterprise Fundsinternal Service Funds
Three Major Categories of Fund in Fund Accounting
Governmental FundsProprietary FundsFiduciary Funds
Economic Resources Management Focus (Introduced by GASB 34)
Provides an overall entity perspective and provides information about the long-term stewardship of governmental resources. This concept is used in areas that do not focus solely on current financial resources but report all the assets at the disposal of the government as well as the liabilities that must be paid.
SGAS 34 requires which two government-wide financial statements?
A Statement of Net AssetsA Statement of Acutivites
