State and Local Government Concepts

Question 1

What are government wide financials?

Answer 1

Government wide financials are an entire governmental units results. Overall operating effectiveness. Utilize the accrual basis of accounting because they utilize economic resources measurement.

Question 2

What are the government funds and what accounting systems do they use?

Answer 2

General fund
Special revenue
Capital projects
Debt service
Permanent

All use modified accrual

Question 3

What are the proprietary funds and what accounting system do they use?

Answer 3

Internal service
Enterprise

All use accrual

Question 4

What are the fiduciary funds and what accounting system do they use?

Answer 4

Pension trust
Investment trust
Private purpose trust
Custodial

All use accrual

Question 5

What does it mean when a fund utilizes the modified accrual accounting system?

Answer 5

It means that revenues and expenses are recognized in the period in which they become available and measurable.

Question 6

What is GASB 34

Answer 6

It requires govt. to use full accrual accounting so users are better able to access the health of the government.

Question 7

What are questions the government should answer related to financials?

Answer 7

Did the governments financial health improve from last year?
Are the costs of services provided by the government being paid for in full with taxes collected during the year or is their going to be a financial burden on taxpayers in future years.