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Financial Accounting and Reporting > State & Local Govt's Part 1 > Flashcards

State & Local Govt's Part 1 Flashcards

1
Q

Conceptual Framework of State and Local Governments Concepts

A
  1. Accountability AND 2. Inter-period equity
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2
Q

Governmental Accounting Standards Board (GASB)

A

Primary authoritative body for accounting standards for governmental funds

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3
Q

Primary Intended Users of Governmental Financial Statements

A
  1. Citizens/taxpayers
  2. School Boards
  3. Investors/Creditors
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4
Q

Measurement Focus for Governmental Fund Accounting

A

Flow of current financial resources to show extent of financial resources obtained in the current period to cover claims against financial resources in current period

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5
Q

Basis of Accounting for Governmental Fund Accounting

A

Modified Accrual is used which means revenue is recorded when measurable and available.

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6
Q

Measurement Focus of Proprietary Fund Accounting

A

Flow of economic resources (similar to GAAP accounting)

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7
Q

Basis of Accounting for Proprietary Fund Accounting

A

Full accrual basis which means revenue is recognized when measurable and earned (like GAAP)

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8
Q

Categories of Funds

A
  1. Governmental - general government financial resources
  2. Proprietary - business-type activities
  3. Fiduciary - resources held by government as a trustee/agent
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9
Q

Types of Governmental-type funds

A
  1. General
  2. Special Revenue
  3. Capital Projects
  4. Debt Service
  5. Permanent
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10
Q

General Funds

A

Governmental-type; accounts for everything not required to belong in another fund

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11
Q

Special Revenue Funds

A

Governmental-type; account for revenue sources that are restricted or committed to be spent for specific purposes other than debt services or capital projects

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12
Q

Capital Projects Funds

A

Governmental-type; funds restricted for construction or acquisition of capital facilities

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13
Q

Debt Service Funds

A

Governmental-type; funds restricted/committed for debt service principal or interest expenditures of governmental type funds

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14
Q

Permanent Funds

A

Governmental-type; endowments for the earnings are restricted to support government programs dedicated for public purposes

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15
Q

Types of Proprietary Funds

A
  1. Internal Service Funds

2. Enterprise

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16
Q

Enterprise Fund

A

Proprietary-type; business-type activities that the public is the primary user of

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17
Q

Internal Service Funds

A

Proprietary-type; business-type activities where other governmental agencies are the primary users

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18
Q

Types of Fiduciary Funds

A
  1. Pension Trust Funds
  2. Private Purpose Trust Funds
  3. Investment Trust Funds
  4. Agency/Custodial Funds
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19
Q

Pension Trust Funds

A

Fiduciary-type; assets held in trust to provide employee retirement benefits

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20
Q

Private Purpose Trust Funds

A

Fiduciary-type; assets held in trust to benefit individuals

21
Q

Investment Trust Funds

A

Fiduciary-type; assets held in trust for other governments

22
Q

Agency/Custodial Trust Funds

A

Fiduciary-type; assets held in custodial capacity

23
Q

Relevance

A

The info must bear a logical relationship with the needs for its’ purpose; most difficult characteristic of service efforts/accomplishments to report

24
Q

Definition of a Fund

A

Fiscal and accounting entity segregated for the purpose of carrying on specific activities or attaining certain objectives; records cash and other financial resources

25
Q

Accountability

A

Primary objective of financial reporting by state and local governments; efficient and effective delivery of services with public resources

26
Q

Inter-period Equity

A

An event that supports this objective is adopting a balanced budget

27
Q

Governmental Funds Measurement Focus

A

Flow of current financial resources and resulting financial position

28
Q

Permanent Fund

A

Used to report resources legally restricted to extent income or earnings, not principal, may be used for purposes supporting the reporting government’s programs for the benefit of the public

29
Q

Governmental Funds Financial Statements

A
  1. Balance Sheet
  2. Statement of Revenues, Expenditures, and Changes in Fund Balance
  3. NO statement of cash flows
30
Q

Governmental Funds Balance Sheet

A
  1. Assets and Deferred Outflows of Resources
  2. Liabilities and Deferred Inflows of Resources
  3. Fund Balance
31
Q

Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance

A
  1. Revenue section
  2. Expenditure section
  3. Other financing sources
32
Q

Proceeds from Long Term debt in Governmental Funds

A

Recorded as “Other Financing Sources” on the statement of revenues, expenditures, and changes in fund balance

33
Q

Permanent Fund Investments

A

Required to be recorded at fair value

34
Q

Bond Anticipation Notes

A

Are current liabilities if gov’t doesn’t have the ability to refinance as a non-current obligation

35
Q

Fixed Assets Governmental Funds

A

Not anticipated to contribute to generation of governmental fund revenue

36
Q

Derived (non-exchange) Tax Revenues

A

Represent taxes imposed on or derived from exchange transactions such as commercial sales - non-reciprocal

37
Q

Journal Entry to record the Budget in a Governmental Fund

A

Dr Estimated Revenues
Cr. Appropriations
Cr. Budgetary Control

38
Q

Journal Entry to record Salaries & Wages incurred

A

Dr. Expenditures - salaries & wages

Cr. Salaries Payable

39
Q

Journal Entry to record when property taxes are levied

A

Dr. Property Taxes Receivable
Cr. Allowance for uncollectible property taxes
Cr. Revenues

40
Q

Expenditures extending more than one accounting period

A

May be allocated between or among accounting periods or may be accounted for as an expenditure of the period of acquisition

41
Q

Purchases Method for Inventory

A

Initially records additions to inventory as an expenditure then estimated inventory balances and related non-separable fund balance amounts based on physical counts/valuations at YE

42
Q

Unassigned Fund Balance

A

The amount of current resources carried forward into the following year that will be available for appropriations; increase when appropriations > expenditures

43
Q

Exception to Modified Accrual Rule

A

Interest/Principal payments for long-term debt; recorded when they become due and payable, not when they accrue

44
Q

Transfers Out

A

Fall under “Other Financing Sources” on the Statement of Revenues, Expenditures, and Changes in Fund Balance

45
Q

Debt Service Cash Receipts/Payments

A
  1. Receipts = Transfer

2. Payments = Expenditures

46
Q

Journal Entry to record the payment of principal and interest

A

Dr. Expenditures control (prin. + interest)

Cr. Cash

47
Q

Governmental Booking/Closing

A

Book: Budget, Activity, Encumbrances
Close: Budget, Activity, Encumbrances

48
Q

Journal Entry at Period End to Reverse Budget

A

Reversed for the same dollar amounts as the original budgetary journal entry
Dr. Appropriations
Dr. Budgetary Control
Cr. Estimated Revenues

49
Q

Depreciation

A

Recorded in the Proprietary Funds and NOT Governmental Funds

Financial Accounting and Reporting (3 decks)

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