Governmental Accounting

Question 1

Governmental, Proprietary, Fiduciary

Answer 1

Governmental Accounting

Question 2

Accrual basis - current economic resources focus (revenues recognized when earned)

Modified accrual basis - current financial resources focus (revenues recognized when available and measurable)

Answer 2

Governmental Accounting

Question 3

The highest amount allowed for a particular expenditure under a budget.

Answer 3

Governmental Accounting

Question 4

Records purchase and reserves it for the encumbrance.

Answer 4

Governmental Accounting

Question 5

Dr Estimated Revenues Control
Cr Appropriations Control
Dr/Cr Budgetary Fund Balance (plug)

Answer 5

Governmental Accounting

Question 6

Dr Appropriations Control
Dr/Cr Budgetary Fund Balance (plug)
Cr Estimated Revenues Control

Answer 6

Governmental Accounting

Question 7

General Fund
Special Revenue Fund
Permanent Fund
Capital Projects Fund
Debt Service Fund

Answer 7

Governmental Accounting

Question 8

The operating fund of the governmental unit

Records Significant Revenues: Taxes; Tickets; Fines; Licenses

Records Significant Expenditures: Police; Education; Fire Dept

Answer 8

Governmental Accounting

Question 9

Restricted for a specific purpose such as street repair.

Answer 9

Governmental Accounting

Question 10

Legally restricted fund; where only earnings can be used to fund programs.

Principal remains intact.

Answer 10

Governmental Accounting

Question 11

Used to acquire and build facilities.

Answer 11

Governmental Accounting

Question 12

Handles repayment of long-term debt and related interest.

Answer 12

Governmental Accounting

Question 13

Balance Sheet

Statement of Revenues; Expenditures; and Changes in Fund Balance

Answer 13

Governmental Accounting

Question 14

When it is BOTH available and measurable; regardless of when it is spent.

Answer 14

Governmental Accounting

Question 15

Money collected from people doing things:

Sales tax (buying cars) or income tax (people working)

Answer 15

Governmental Accounting

Question 16

Tax assessed just because things exist

Example: property tax on a car (even if it’s never driven); real estate tax

Recorded as a revenue when BUDGETED.

Estimated uncollectible property tax revenues don’t offset revenues; so don’t net them.

Answer 16

Governmental Accounting

Question 17

Internal Service Funds - to serve the needs of other governmental units (i.e. motor pool)

Enterprise Funds - provide goods or services to external users (i.e. post office)

Answer 17

Governmental Accounting

Question 18

Restricted - Restricted by Contributor 
 Committed - Restricted by Government
 Assigned - Intended for a purpose
 Unassigned - Available to be spent
 Non-spendable - Not in a spendable state

Answer 18

Governmental Accounting

Question 19

Agency Fund - government acts as an agent or custodian

Pension Trust Fund - Government is a trustee for a pension plan

Investment Trust Fund - Government is a trustee over a series of investments

Private Purpose Trust - Trust that benefits various individuals and entities

Answer 19

Governmental Accounting

Question 20

Assets (Current & Non-Current)
Deferred Outflows of Resources
Liabilities (Current & Non-Current)
Deferred Inflows of Resources

Answer 20

Governmental Accounting

Question 21

They are shown net of debt

Asset Cost - Accumulated Depreciation - Asset Liabilities : Net Assets

Answer 21

Governmental Accounting

Question 22

Modified approach:

Reported at cost; no accumulated depreciation

Answer 22

Governmental Accounting

Question 23

Into Governmental Activities and Business Activities

Answer 23

Governmental Accounting

Question 24

They are divided by function

If the activities of a component are distinguishable from the rest of the governmental entity; then discreet presentation is required

If the activities of the component cannot be identified and separated from the rest of the governmental activities; then blended presentation is warranted.

Component units are reported in the Entity-Wide Financial Statements and not the Fund Financial Statements.

Answer 24

Governmental Accounting

Question 25

To provide information that is useful and benefits a wide range of users including:

Costs of services provided

Sufficiency of revenues to cover costs

Financial position of entity

Answer 25

Governmental Accounting