Governmental accounting Flashcards
what is the purpose of the debt service fund
A Debt Service Fund accounts for the accumulation of resources for, and the payment of, general long-term debt principal and interest.
When creating a cash flows for a university, what type of cash flow is recorded in operating activities
Only unrestricted operating activities
What is the measurement focus of
- governmental funds
- Proprietary and trust funds
- Government wide financial reporting
Current financial resources - the focus is on cash and/or assets that are expected to be converted to cash within the accounting period, or shortly thereafter. This measurement looks at whether the financial resources obtained during the accounting period are enough to cover all claims made against the fund during the same period used for governmental funds.
economic resources measurement focus is where a set of fin stmt reports all inflows and outflows and fund balances affecting or reflecting an entity’s net position. It is used for proprietary and trust funds and government wide fin reporting.
What are the proprietary funds
- An internal service fund is used to account for activities that provide goods or services to other funds, as well as departments or agencies of the primary government, or sell to other government entities on a cost-reimbursement basis. This fund should only be used when the reporting government is the primary participant in the activity.
- An enterprise fund is used to account for any activity for which external users are charged a fee for goods and services
What is the purpose of the special revenue service fund
It is an account established by a government to collect money that must be used for a specific project.
What are derived tax
Derived tax revenues result from taxes assessed by government on exchange transactions. The taxes are “derived” from the underlying exchange transactions.
