Governmental accounting Flashcards
How are expenditures related to long term bond issues that include issues costs and debt insurance?
Expenditures related to these services should be expensed in the period incurred.
What does not affect an internal service funds net income?
Temporary transfers since by nature of being temporary, the transfer will be undone at some point and will and should not affect the net income of the fund.
What is the journal entry for the receipt of supplies and approval of the expenditure?
Db - Expenditures control
Cr - Liability/Payable account
What is the budget entry when the budget is adopted?
Db - Estimated revenues control
Plug - Db/Cr - Budgetary Fund Balance
Cr - Appropriations
What is the entry to record purchase order issued or other contractual commitments made?
Db - Encumbrances Control (expected cost to be spent)
Cr - Encumbrances Outstanding
How is an impairment loss for a capital asset building recognized in governmental accounting?
It is not an expenditure in the general fund since capital assets and any revaluations are reported in the governmental funds.
Impairment is an expenditure and revaluation of capital assets and is reported in the statement of activities, usually as a program expense.
What accounts should be closed in governmental accounting?
Expenditures and Revenues
Generally, operating/income statement accounts that are used to periodically measure inflows/outflows of financial resources.
Which accounts are not closed at fiscal year end in governmental accounting?
Any balance sheet accounts
examples include: vouchers payable, fund balance, and fund balance-reserve for encumbrances
What is an example of the most significant characteristic in determining the classification of an activity of an enterprise fund?
The pricing policies of the activity establish fees and charges designed to recover its cost.
How are billings to other governmental units recorded by an internal service fund?
They are recorded as operating revenues
It is an exchange like reciprocal interfund activity
Interfund services provided and used should be reported as revenues in seller funds
Interfund services should be reported as expenditures or expenses in purchaser funds
What is the measurement focus for governmental fund accounting?
Current financial resources focus
Assets that can be spent are grouped with the appropriate liabilities
How can you calculate the amount available for use for the general fund for a county?
Appropriations (maximum amount allowed under budget) less encumbrances (committed use of funds) less expenditures (already expended)
Where is the statistical section of the CAFR reported?
Outside of the financial section of the report
Considered to be supplementary information
What does the statistical section of the CAFR provide?
Statistical tables that present comparative data for several periods of time that may contain nonaccounting data
How are property taxes recognized in the entity-wde statement of activities?
For governmental funds, revenue is recognized when available under the modified accrual basis
- they are recognized after deducting estimated uncollectibles or discounts
They are recognized at the net realizable value of the current year tax levy
- cy collections
- cy collections up to 60 days
- py collections after 60 days
- net of any uncollectible $ amount or % (or discount value)
If an internal service fund is used by a government as a central motor pool, how would the assets and liabilities that are not eliminated be recorded and reported in the government-wide statement of net position?
Governmental activities are the predominant users of internal service funds, and for the assets & liabilities not eliminated, will in most cases be governmental activities.
What fund accounting is required and used for government risk pools if the government’s own agencies are not the predominant participants?
Enterprise fund accounting
