Governmental Accounting Overview

Question 1

Financial Statements

Answer 1

1. Timeliness
2. Consistency
3. Comparability

Question 2

Governmental Accountability Office (GAO)

Answer 2

Prescribes auditing standards (single audit act)

Question 3

GAAP for governmental Agencies

Answer 3

Government= GASB
Not-for-Profit= FASB

Question 4

Characteristics in Financial Reporting for Government

Answer 4

u- understandablitiy
r- reliability
m- make a difference- relevance
I- In timeliness 
C- Consistency year over year
E- entity to entity comparability

Question 5

Key Concepts in Governmental Accounting

Answer 5

1. fund structure
2. fund accounting
3. external reporting

Question 6

Fund Structures

Answer 6

Governmental Funds- GRaSPP
Proprietary Funds- SE
Fiduciary Funds- CIPPOE

Question 7

Governmental Funds

Answer 7

No profit motive
accounted for using the:
modified accrual basis of accounting
current financial resources measurement focus= current only (no FA and no LTD)

Question 8

General Fund

Answer 8

set up to account for the ordinary operations of a governmental unit that is financed from taxes and other general revenues

Question 9

Special Revenue Funds

Answer 9

set up to account for revenues from specific taxes or other earmarked sources that (by law) are restricted or committed to finance particular activities of government.

Question 10

Debt Service Funds

Answer 10

Set up to account for the accumulation of resources and the payment of interest and principal on all “general obligation debt”

Question 11

Capital projects fund

Answer 11

set up to account for resources restricted, committed, or assigned for the acquisition or construction of major capital assets by a governmental unit

Question 12

Permanent Fund

Answer 12

used to report resources that are legally restricted to the extent that income and not principal may be used for purposes supporting the reporting governments programs.

Question 13

Proprietary Funds

Answer 13

Treat like a customer/ not a citizen
accounted for using the:
full accrual basis of accounting
economic resources measurement focus

Question 14

Proprietary Fund types

Answer 14

Internal Service Funds- set up to account for goods and services provided by designated departments on a cost-reimbursement

Question 15

Fiduciary Trust Funds

Answer 15

Trust accounts
full accrual basis of accounting
economic resources measurement focus

Question 16

Custodial Funds

Answer 16

usually account for resources in temporary custody of the governmental unity and any fiduciary activities that are not required to be reported in other fund classifications.

Question 17

Investment Trust Funds

Answer 17

account for external investment pools

Question 18

Private Purpose trust funds

Answer 18

used for activities not properly accounted for either as pension or investment trust funds

Question 19

Pension and other employee benefit trust funds

Answer 19

resources of defined contribution plans, post-employment benefit plans and other long-term employee benefit plans