Governmental Accounting Flashcards
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What are the three major types of funds in governmental accounting?
Governmental, Proprietary, Fiduciary
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Which two accounting bases are used in governmental accounting?
Accrual basis - current economic resources focus (revenues recognized when earned)
Modified accrual basis - current financial resources focus (revenues recognized when available and measurable)
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What is a budget appropriation?
The highest amount allowed for a particular expenditure under a budget.
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What is an encumbrance?
Records purchase and reserves it for the encumbrance.
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What is the opening budgetary entry?
Dr Estimated Revenues Control
Cr Appropriations Control
Dr/Cr Budgetary Fund Balance (plug)
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What is the closing budgetary entry?
Dr Appropriations Control
Dr/Cr Budgetary Fund Balance (plug)
Cr Estimated Revenues Control
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What are the types of governmental funds?
General Fund Special Revenue Fund Permanent Fund Capital Projects Fund Debt Service Fund
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What is a General Fund?
The operating fund of the governmental unit
Records Significant Revenues: Taxes; Tickets; Fines; Licenses
Records Significant Expenditures: Police; Education; Fire Dept
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What is a Special Revenue Fund?
Restricted for a specific purpose such as street repair.
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What is a Permanent Fund?
Legally restricted fund; where only earnings can be used to fund programs.
Principal remains intact.
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What is a Capital Projects Fund?
Used to acquire and build facilities.
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What is a Debt Service Fund?
Handles repayment of long-term debt and related interest.
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Which fund statements are issued in Governmental Accounting?
Balance Sheet
Statement of Revenues; Expenditures; and Changes in Fund Balance
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When is Revenue recorded in Governmental Accounting?
When it is BOTH available and measurable; regardless of when it is spent.
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What is Derived Tax Revenue?
Money collected from people doing things:
Sales tax (buying cars) or income tax (people working)