Review for Exam 1 Flashcards
Differences in the GNP Environment
- Organizational Purposes: .
- Sources of Revenues:
- Potential for Longevity:
- Relationship with Stakeholders:
- Role of the Budget
Federal government and agencies
Financial Accounting Standards Advisory Board (FASAB)
State and local governments
Governmental Accounting Standards Board (GASB)
Private Not-for-Profits
Financial Accounting Standards Board (FASB)
The ____ oversees both FASB and GASB
Financial Accounting Foundation
How do GASB’s objectives differ from business objectives
- the budget
- legal compliance
- efficiency and effectiveness measures other than net income
a fund
represents a part of the activities of some organizations
- is an accounting entity
- segregates resources for specific activities
The primary report, Comprehensive Annual Financial Report (CAFR) has three sections
- Introductory
- table of contents
- letter of transmittal
- organizational chart
- List of chief government officers - Financial section
- MD&A - paragraph format summary of most important issues during the year - Government wide statements
Net position is recorded in three categories
- net investment in capital assets
- restricted
- unrestricted
Statement of activities - similar to business income statement
permanent funds
Report resources that are restricted to the extent that only earning, not principal, may be used for purposes that support the reporting government’s programs
capital projects funds
account for and report financial resources that are restricted, committed or assigned to expenditure for capital outlays. Accounts for the purchase or construction of major capital improvements, except those purchased by a proprietary, and less commonly fiduciary, fund
debt service funds
account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest
special revenue funds
account for and report the proceeds of specific sources that are restricted or committed (not specifically assigned) to expenditures for specified purpose other than debt or service capital projects
General fund
accounts for the most of the basic services provided by the government.
Proprietary type funds
business like activities
Enterprise fund
a fund established for the purpose of measuring net income for a governmental department providing goods or services primarily to outside consumers, in which it is the intent of the governmental that the department operate on a cost recovery or profitable basis
Internal service fund
a fund established for the purpose of measuring net income for a governmental department providing services primarily to other departments or agencies within the government, in which it is the intent of the government that the department operate on a cost-reimbursement basis
Fiduciary type
Acting as an agent or trustee of monies that generally belong to other parties
Investment trust fund
accounts for the external portion of investment pools governed by a trustee agreement in which the sponsoring government acts as a trustee
pension fund
used to account for assets provided to pension trusts. The earnings of theses assets are used to pay the pensions of public (government) employees
Private-purpose trust funds
report all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments
custodial funds
account for all fiduciary activities, including activities where a trust fund is not in effect
