Governmental Accounting Overview

Question 1

Remember to think of funds like a checkbook

Answer 1

A checkbook would have many different accounts:

• Savings
• Operating (Checking)
• College fund (CD)

A fund is just a “checkbook” account

Question 2

Fund classifications

Answer 2

When revenues and expenditures (expenses) are recongized.

Different accounting principles for each one though because well hey, its the government.

Question 3

Fund structure

Answer 3

• Governmental funds
• Propreitary funds
• Fidicuary funds

Question 4

Governmental Funds (no profit motive)

Current only (No Fixed assets {FA} or Long term debt {LTD})

Current economic resources

GRaSPP

Answer 4

General fund

Special Revenue Funds

And

Debt Service Funds

Capital Projects Funds

Permanent Fund

Question 5

Proprietary Funds= Treat like customer/not citizen

Full accural basis

Economic resources measuement focus

Everything! (FA and LTD)

SE

Answer 5

S Internal Service Funds

Enterprise funds

Question 6

Fiduciary funds (Trust Accounts)

Full accural accounting

Economic resources measurement focus

Everything!!! (FA and LTD)

PAPI

Answer 6

Pension Trust funds

Agency Trust funds

Private Purpose Trust Funds

Investment Trust Funds

Question 7

Governental funds

are

MAC-GRaSPP

Answer 7

Modified

Accrual accounting

Current financial resourses measuement focus

GRaSPP

Question 8

Properity and fiduciary funds have

SPACE

Answer 8

SE

PAPI

Accural accounting

Carry fixed asset and long-term debt

Economic resources measuement focus

Question 9

Governmental fund constraints

are

NU CAR

GRaSPP if you want a NU CAR

Answer 9

Non-spendable

Unassinged

Committed

Assigned

Restricted

Question 10

Fund accounting, what leads to it?

Answer 10

Legal restrictions ( because of compliance with spending purposes)

Financial Control (spedning limits)

Question 11

The purpose of GASB #34 (seperating fund financial statements and governmental and proprietary funds) is to?

Answer 11

Report additional and detailed information about the primary government.

Question 12

Of course (ironic), relevance is the most difficult for a government to report.

Question 13

What is the primary measurement focus for governmental fund types?

Answer 13

Current finanical resources

Question 14

Governmental fund measurement focus is on the determination of:

Answer 14

Financial position

and

Current Finanical Resources

Question 15

What would you compare accounting and reportin properitary funds to?

Answer 15

A business enterpirse

thus, income determination is the primary oreination

Question 16

The general fund recongnizes revenue when:

Answer 16

When revenues in the accounitng period in which they occur become measurable and available (modified accurral accounting)

Question 17

Compensated absenece liablity

At what period the salary rate used to calculate the lialbility ?

Answer 17

At the effect of the balance sheet date.

Question 19

Government-wide statement of activities?

What are they similar to?

What do they take into account?

Answer 19

They are similar to comerical enterprises.

Government wide statements do not account the availability like just the governmental statement does, they just include it all and deduct of net.

Question 20

The only fund that shows a positive amount in its unassigned fund balance classifiacation is what?

Answer 20

The General fund.

Question 21

How are inventories for a special project classifeid?

Answer 21

As non-spendable.

Question 22

If expenditures incurred for specific purposes exceed the amounts restricted, committed or assigned to those purposes, what account would be neccessary to report?

Answer 22

Negative fund balance- unassigned.

Question 23

Restricted fund balances represent resources that:

Answer 23

use has been limited by such external sources as creditors (something such as debt covenants), contributers, other governments, laws, constiutional provisions, or enabling legilstation.

Question 25

The most restrictive classification of governmental fund balances is

Answer 25

Committed

Question 26

Permanent funds

Answer 26

Restrcited for what income comes in.

Not principal

Question 27

Government wide statements

Answer 27

Measurement focus- Economic resources

Basis of accounting- accural

Vice versa for just government statements