Governmental accounting Flashcards
What is the primary authoritative body for governmental accounting?
Governmental Accounting Standards Board (GASB).
Who are the users of governmental financial statements
a. Citizens of the jurisdiction
b. Legislative/oversight groups
c. Investors/creditors
For a government entity which is the most difficult characteristic to report on?
- Relevance is the most difficult characteristic of service efforts and accomplishments to prove.
Mentioned the type of fund that exist in governmental fund (GRASSP)/
- General
- Special revenue
- Capital projects
- Debt Service
- Permanent
In governmental accounting mentioned the type of Proprietary funds (SE).
- Internal Service
- Enterprise
In governmental accounting mentioned the type of Fiduciary funds (CIPPOE).
- Custodial trust fund
- Investment trust fund
- Private purpose trust fund
- Pension and other employee benefit trust fund
For governmental funds what is the measurement focus?
- Current final resources (financial resource measurement focus)
- Financial position (Presentation)
For proprietary and fiduciary funds what is the measurement focus?
- Income determination (Economic resources measurement focus)
- Government wide presentation
For governmental funds what is their basis of accounting?
Modified accrual basis of accounting
For proprietary and fiduciary funds what is their basis of accounting?
Accrual accounting
What is the paramount objective of financial reporting by state and local governments?
Accountability for Governmental (and not-for-profit) organizations
What is an Enterprise fund used for ?
To account for the acquisition and operations of governmental facilities that are intended to primarily be self supported by user chargers (Example municipality undertaking the construction of a utility plant financed by revenue bonds).
What is a capital project fund used for ?
To account for resources used for the acquisition or construction for major capital assets ( Example school board securing debt to finance the construction of an expanded network of K-12 schools and the renovation of existing facilities).
What is an internal service fund used for ?
To account for goods and services to be provided to other departments and agencies on a fee basis (example a fund that account for activities of a vehicle maintenance pool that is responsible for providing support to all county vehicles on a fee-for-service basis)
What is a custodial fund used for ?
To account for resources in the temporary custody of a governmental unit (example a Clerk of the Court uses an internal service fund to account for alimony payments in accordance with court orders related to divorce decrees).
What is a special fund used for?
To account for proceeds of specific revenue sources that are restricted or committed to expenditure for a specified purpose.
