Modified Accrual Accounting

Question 1

Derived tax revenue

Answer 1

Taxes imposed or derived from sales taxes income taxes, etc.

Question 2

Imposed non-exchange revuenes

Answer 2

Socialist, democrats favorite tax

Wealth tax, property taxes, fines.

Question 3

Vouchers payable

Answer 3

Not accounts payable

Already included in expenditures

Question 4

What demonstrates interperiod equity?

Answer 4

A balanced budget is adopted.

(That is a fucking joke)

Question 5

Budgetary comparisons must be presented on the same basis as the adopted budget.

Answer 5

Cash adopted, cash is the comparison

Question 6

What increases revenues for government?

Answer 6

Taxes, licenses, fines and penalties, and intergovernmental reveunes.

Question 7

What is credited when a purchase is ordered?

Answer 7

Budgetary control

Question 8

When are estimated revenues debited?

Answer 8

When the budget is recorded

Estimated revenue control xxx

    Budgetary control             xxx

Question 9

Object classification

Answer 9

The most specific classification in the hierachy.

Something such as salaries and wages.

Question 10

Expenditures

Answer 10

When fixed assets are purchased: Land, buildings, equipment, etc.

Question 11

Expenditures of a governmental unit over more than one period, when is allocation?

Answer 11

May be allocated between or among accounting periods or may be accounted for as expenditures of the period of acquistion.

Question 12

When an amount is less on a purchase that is charagable against the years budgeted appropriatons, what is the J/E?

Answer 12

Encumbarances xxx

      Budgetary control xxx

Question 13

Big typical T account to know at beginning of year year

Answer 13

Estimated revenue control

Estimated other financing sources

Budgetary control (negative)

                        Appropriations          

                       Estimated other financing uses (transfers out)

                       Budgetary control (postive)

Question 14

Proceeds from debt and interfund transfers for debt service are classified as what?

Answer 14

Other financing sourcee

Question 15

J/E for encumbarcnes

Answer 15

Appropriated was 100,000, invoices were 90,000

Encumbarances 90,000

      Budgetary control   90,000

Reverse

Budgetary control 90,000

        Encumbarces   90,000 

Carry forward

Unassigned fund balance 90,000

         Encumbarances            90,000

Question 16

J/E for purchase order for 10,000 that when invoice came in it was 9,000.

Answer 16

Encumbances (estimated) 10,000

   Budgetary control            10,000

Budgetary control 10,000

     Encumbarnces     10,000

Expenditures (actual) 9,000

      Vouchers payable       9,000

Question 17

Expedintues for government fund transactions, how do you account for them at year end for increases?

Answer 17

Gotta use the *current *financial resources measurment focus.

The sum at year end would be expenditures paid during the year PLUS the current liability at year end.

You wouldn’t consider the non-current liablity.

Question 18

Remember, when are revenues (taxes) acocunted for?

Answer 18

In the year of collections PLUS the amount expected to be collected within 60 days of the next year.

Question 19

Example of when an encumbarance would be debited

Answer 19

Purchase order is approved

Encumbarance xxx

    Budgetary control xxx

Question 20

Remember that the balance in encumbarances must be the same as the balance in budgetary control.

Answer 20

It is reversed at year-end every year.

Encumbarances xxx

    Budgetary control xxx

Budgetary control xxx

      Encumbarances   xxx

Question 21

J/E for when taxpayers are billed for taxes

Answer 21

Taxes receivable xxx

       Revenues          xxx

        Allowance for doubtful taxes receivable xxx

Question 22

If an encumbarance is outstanding at year-end in a state’s general fund, how would be be reported?

Answer 22

As a fund balance committment in the general fund.

Unnisagned fund balance xxx

      Fund balance, committed xxx

Question 23

How is the purchase of a fixed asset recorded in the government fund?

Answer 23

As an expenditure immediately, even if financed.

There is no capitalizing or deprecating in the government fund.

Question 24

Non-exchange transaction, what is it and how is it classified?

Answer 24

It is operating grants and subsidies (appropriations for a specific education program). They basically are not part of operating revenue.

They are classified as nonoperating revenues.

Question 25

Exchange transaction

vs.

Non exchange transaction

Answer 25

An exchange transaction is a reciprical transfer in which each party receives and sacrifices something of equal value (income taxes go to the fire department).

A non exchange transaction involves giving/receiving value without giving equal value in return. (wealth tax, property tax, basically liberal taxes).

Question 26

Committed funds

Answer 26

Committed fund balances represent resources that can only be used for specific purposes contriant to restraints imposed by formal action of the government’s hightlest level of decision making authority.

Question 27

Restricted funds

Answer 27

Restricted funds represenet resources that have been limited by external sources such as creditors, contributers, other government, laws, contitutional provision, or enabling legislation.