Modified Accrual Accounting Flashcards
Derived tax revenue
Taxes imposed or derived from sales taxes income taxes, etc.
Imposed non-exchange revuenes
Socialist, democrats favorite tax
Wealth tax, property taxes, fines.
Vouchers payable
Not accounts payable
Already included in expenditures
What demonstrates interperiod equity?
A balanced budget is adopted.
(That is a fucking joke)
Budgetary comparisons must be presented on the same basis as the adopted budget.
Cash adopted, cash is the comparison
What increases revenues for government?
Taxes, licenses, fines and penalties, and intergovernmental reveunes.
What is credited when a purchase is ordered?
Budgetary control
When are estimated revenues debited?
When the budget is recorded
Estimated revenue control xxx
Budgetary control xxx
Object classification
The most specific classification in the hierachy.
Something such as salaries and wages.
Expenditures
When fixed assets are purchased: Land, buildings, equipment, etc.
Expenditures of a governmental unit over more than one period, when is allocation?
May be allocated between or among accounting periods or may be accounted for as expenditures of the period of acquistion.
When an amount is less on a purchase that is charagable against the years budgeted appropriatons, what is the J/E?
Encumbarances xxx
Budgetary control xxx
Big typical T account to know at beginning of year year
Estimated revenue control
Estimated other financing sources
Budgetary control (negative)
Appropriations
Estimated other financing uses (transfers out)
Budgetary control (postive)
Proceeds from debt and interfund transfers for debt service are classified as what?
Other financing sourcee
J/E for encumbarcnes
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
J/E for purchase order for 10,000 that when invoice came in it was 9,000.
Encumbances (estimated) 10,000
Budgetary control 10,000
Budgetary control 10,000
Encumbarnces 10,000
Expenditures (actual) 9,000
Vouchers payable 9,000
Expedintues for government fund transactions, how do you account for them at year end for increases?
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.
Remember, when are revenues (taxes) acocunted for?
In the year of collections PLUS the amount expected to be collected within 60 days of the next year.
Example of when an encumbarance would be debited
Purchase order is approved
Encumbarance xxx
Budgetary control xxx
Remember that the balance in encumbarances must be the same as the balance in budgetary control.
It is reversed at year-end every year.
Encumbarances xxx
Budgetary control xxx
Budgetary control xxx
Encumbarances xxx
J/E for when taxpayers are billed for taxes
Taxes receivable xxx
Revenues xxx
Allowance for doubtful taxes receivable xxx
If an encumbarance is outstanding at year-end in a state’s general fund, how would be be reported?
As a fund balance committment in the general fund.
Unnisagned fund balance xxx
Fund balance, committed xxx
How is the purchase of a fixed asset recorded in the government fund?
As an expenditure immediately, even if financed.
There is no capitalizing or deprecating in the government fund.
Non-exchange transaction, what is it and how is it classified?
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.
Exchange transaction
vs.
Non exchange transaction
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).
Committed funds
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.
Restricted funds
Restricted funds represenet resources that have been limited by external sources such as creditors, contributers, other government, laws, contitutional provision, or enabling legislation.
