Government TBS Review

Question 1

If a General Fund pays for staff to go to a conference, and some are Internal Service Fund Employees, and it knows that the Internal Service Fund will reimburse the costs, what is the JE?

Answer 1

DR: Expenditure (for General Fund Employees)
DR: Due From Internal Service Fund (for Internal Service Fund Employees)
CR: Cash

Question 2

With Operating Transfers, how is the interfund transfer recorded by the transferee?

Answer 2

Modified Accrual: Credit Other Financial Sources
Accrual: Credit Other Revenue
*Operating Transfers are ‘Other Changes’

Question 3

With Operating Transfers, how is the interfund transfer recorded by the transferor?

Answer 3

Modified Accrual: Debit Other Financial Uses
Accrual: Debit Other Expense
*Operating Transfers are ‘Other Changes’

Question 4

What is a quasi-external transfer?

Answer 4

They are payments from one fund to another for goods or services that are being provided
These are treated like they are revenues, expenses, and expenditures as appropriate

Question 5

What is a operating transfer?

Answer 5

A operating transfer is an interfund transfer.

Question 6

What is the JE when a loan is made between funds?

Answer 6

Creditor Fund
DR: Due From Fund
CR: Cash

Debtor Fund
CR: Cash
DR: Due to Fund

Question 7

What does a the general fund, or other funds that use modified accrual, call an outflow of resources to pay for services or to purchase an asset?

Answer 7

An expenditure

Question 8

What does a proprietary of fiduciary fund that uses accrual accounting call an outflow of resources to pay for services?

Answer 8

An expense

Question 9

What is the role of a General Fund?

Answer 9

General Fund (Ordinary Funds such as: ordinary operations, public safety, public works, etc)
*Modified Accrual

Question 10

What is the role of a Special Fund?

Answer 10

Special Revenue Fund (Earmarked revenues)

*Modified Accrual

Question 11

What is the role of a Capital Fund?

Answer 11

Capital Projects Fund (Revenue for capital projects such as new bridges, etc)
*Modified Accrual

Question 12

What is the role of a Debt Service Fund?

Answer 12

Debt Service Fund (Makes principal and interest payments on tax supported debts)
*Modified Accrual

Question 13

What is the role of a Permanent Fund?

Answer 13

Permanent Fund (Funds that cannot be spent—only interest on the funds may be spent. Interest from the fund investments are spent on items such as cemeteries)
*Modified Accrual

Question 14

What is the Internal Service Fund?

Answer 14

A Department that takes care of government needs (Example: Maintenance Department, IT Department, etc)
It bills the other funds for services

*Accrual Basis

Question 15

What is the Enterprise Fund?

Answer 15

Provides services to the general public on a user fee basis. (Example: City Pool, City Bus, etc)

*Accrual Basis

Question 16

What is the Pension Trust Fund?

Answer 16

Accounts for pension trust money of government employees

*Accrual Basis

Question 17

What is the Private-Purpose Trust Fund?

Answer 17

Money reserved for private purpose other than government
Examples Are: Fund to hold unclaimed tax refunds, scholarship funds

*Accrual Basis

Question 18

What is the Agency Fund?

Answer 18

Collects the money and transfers it to someone else. (Example: IRS)
Only has assets and liabilities. No fund balance.
*Accrual Basis

When money is received:
DR: Cash
CR: Due To

Question 19

What is the Investment Trust Fund?

Answer 19

Multiple government entities are pooling their money together to invest their resources

*Accrual Basis