Governmental Accounting Flashcards
What are derived tax revenues?
Self assessed taxes such as sales tax, income tax, motor fuel tax
Revenue when occurs
What are imposed non-exchange transactions?
Not derived from transactions such as property taxes, fines, forfeits, special assessments
Revenue when use of money permitted, asset when have legal claim
What are government mandated non-exchange transactions?
One level of government provides funds to another level, such as federal grant
Revenue when eligibility requirements met
What are voluntary non-exchange transactions?
Transactions entered into willingly, such as unrestricted grants and voluntary donations
Revenue when eligibility requirements met
When is revenue recognized under modified accrual?
When measurable and available to spend
Revenue expected to be collected in first 60 days following fiscal year is considered current year revenue
What is the form of Statement of Net Position?
Assets \+ Deferred Outflows of Resources - Liabilities - Deferred Inflows of Resources = Net Position
What are the components of Net Position?
Net investment in capital assets - net amount
Restricted net position
Unrestricted net position
What are the four columns of Statement of Net Position?
Governmental Activities - Government fund + Internal Service
Business-type Activities - Enterprise
Total
Component Units - discrete
What are the five fund classifications?
Nonspendable - not in spendable form and legally required to be maintained
Restricted - restricted by external sources or imposed by law
Committed - constraints imposed by highest level of decision making authority
Assigned - government intends to spend for specific purpose
Unassigned - all others
What are requirements to be an Enterprise fund?
- Activity is financed with debt solely on pledge from net revenue from fees and charges
- Laws and regulations require cost to be recovered through fees
- Pricing policies establish fees to recover costs
What are financial statements for governmental funds?
Balance Sheet
Statement of Revenues, Expenditures, and Changes in Fund Balance
What are financial statements for proprietary funds?
Statement of Net Position
Statement of Revenues, Expenses, and Changes in Fund Net Position
Statement of Cash Flows
What are financial statements for fiduciary funds?
Statement of Fiduciary Net Position
Statement of Changes in Fiduciary Net Position
What are sections of Statement of Cash Flows in proprietary funds?
- Operating - direct method only
- Investing - includes interest and dividend income, loans made
- Noncapital Financing
- Capital Financing - includes interest expense, purchases and sales of capital assets
What are the four types of inter fund transactions?
Operating transfers = Other financial sources/uses
Quasi-external = Expenditure/expense/revenue
Reimbursements
Loans
What are objectives of financial reporting in GASB Concept Statement #1?
Accountability
Evaluate operating results
Assess ability to meet obligations
Under GASB, what are financial reports used primarily to?
ACE F/S Actual to budget Compliance with laws, rules, and regulations Efficiency and effectiveness Financial condition
What is included in Government-Wide Financial Statements?
Statement of Net Position
Statement of Activities
- Uses Accrual Accounting *
- Does not include fiduciary funds or fund detail *
What are three standard sections of Comprehensive Annual Financial Report?
- Intro
- Financial
- Statistical
What are criteria for government activity to be a special purpose government?
- has a separately elected governing body
- is legally independent
- is fiscally independent
How is inventory recorded under the consumption method?
Inventory is debited as goods are purchased
Like GAAP
How is inventory recorded under the purchases method?
Inventory purchased is recorded as immediate expenditure
Which funds are reported separately on fund financial statements?
General Fund
Other funds that are both:
1. 10% or more of total category assets, liabilities, revenues, expenses AND
2. 5% or more of total entity assets, liabilities, revenue, expenses
What are the criteria for a component unit?
The primary government appoints a voting majority of the organization’s governing body and
- It is able to impose its will on that organization
- There is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government.
- Unit is fiscally dependent on the primary government
