governmental accounting Flashcards
primary objective:
- provide information that is useful and benefits a wide range of users including:
- cost of services provided
- sufficiency of revenues to cover costs
- financial position of the entity
fund types
-governmental
fiduciary
propritary
fund accounting - two types
accrual basis:
- current economic resources focus
- revenues recognized when earned
modified accrual basis
- current financial resources
- recognized when available and measurable
budget estimates: appropriation and encumbrances are
appropriation: highest amount allowed for an expenditure
encumbrances: records purchases and reserves it
opening budgetary entry
dr. estimated revenue control
credit appropriation control
dr/cr budgetary fund balance (plug)
general fund is the
“operating” fund of the governmental unit.
-records significant revenues, taxes, tickets, fines, licenses.
records significant expenditures
special revenue fund
restricted for a specific purpose as a street repair.
permanent fund
legally restricted.
only earnings can be used to fund programs.
principle remains intact
capital projects fund
used to acquire and build facilities.
debt service fund
handles repayment of long term debt and interst payments.
government funds statements:
- balance sheet
- statement of revenues, expenditures, and changes in fund balance.
drived tax revenue?
- collected by people “doing things.
ex. buying cars -> sales tax
going to work -> income tax
imposed tax revenue?
assessed just because things “exist”
- property tax on car
- real estate tax
- recorded as revenue when budgeted.
do you net uncollectible property tax?
NO!!
estimated uncollectible property tax revenues don’t offset revenues, so don’t net them
priorietary funds statements?
- statement of net assets
- statement of revenues, expenses, and cahnges in net assets
- statement of cash flows.
