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the measurement focus of government type funds is on the determination of;

current fiancial resources and financial position

which of the following fund types has an economic measurement focus?

the general fund is a governmental fund.
the measurement focus of governmental funds is on the determination of financial position and changes in financial positon

fund accounting is used by governmental units with resources that must be

segregated for the purpose of carrying on specific activities or attaining certain objectives

which item is considered the primary measurement focus?

governmental fund measurement focus is
on determination of financial position and
changes in financial position rather than net income determination

governmental fund measurement focus is on the determination of:

financial position and current financial resources but not income

the full accrual basis is used and the measurement focus is on net income and

capital maintanence

primary emphasis in accounting and reporting for governmental funds is:

source use and balance of current financial resources.

governmental funds use the

modified basis of accounting

modified accrual basis of accounting should be used for

capital projects funds. the grspp funds use the modified accrual basis of accounting proprietary funds (SE enterprise and internal service funds) and fiduciary which include the pension trust fund uses the accrual basis

what does the modified accrual basis of accounting mean?

recognize revenues in the accounting period
in which they become available and measureable

what does it mean to use the full accrual basis of accounting?

recognize revenues in the accounting period in which they are earned

which funds use the modified accrual?

special revenue----agency
debt service-----private purpose
capital projects-----investment trust

what is the only fund that does have a positive balance

general fund

if expenditures incurred for specific purposes exceed the amouts restricted,

report a negative unassigned fund balance

what are restricted fund balances?

use has been limited by such external sources as creditors, contributors, other governments laws constitutional provisions or enabling legislation

special revenue fund is a governmental fund,

uses modified accrual accounting

what are derived tax revenues?

represent taxes imposed on or derived from exchange transactions such as commercial sales

property taxes and fines represent which of the following classes of nonexchange transactions for governmental units?

imposed nonexchange revenues include property taxes and fines

issue a purchase order

dr. encumbrance
cr. reserve for encumbrance

what is the remaining amount available for use by the county?

encumbrances are either commitments or assignments of the fund balance for purchase orders.

less: expenditures
remaining available appropriations


dr. expenditures-salaries and wages
cr salaries payable

journal entry to record salaries and wages

property taxes levied

dr. property taxes receivable
cr. allowance for uncollectible property taxes
cr. revenues

decrease encumbrances

dr. reserve for encumbrances
cr. encumbrances

record appropriations

dr. fund balance
cr. appropriations

record budget

dr. estimated revenues
cr. appropriations
cr. fund balance

purchase order issued

dr. encumbrances
cr. reserve for encumbrances

record the budget related to revenue

dr. estimated revenue control
cr. budgetary fund balance

wages and salaries are what type of classification?


record the purchase of a general fixed asset given a decrease in net financial resources

dr. expenditures
cr. vouchers payable

dr. property taxes receivable
cr. deferred revenue
dr. cash
cr. deferred revenue

revenues recognized when measurable and available

dr. encumbrances
cr. reserve for encumbrances

issue purchase orders or the signing of contracts

estimated revenues of 100,000
appropriations of 80000
budget with which JE?

dr. estimated revenues
cr. appropriations
cr. budgetary fund balance

budgeted excess of estimated revenues over appropriations, ridge should:

dr. estimated revenues
cr. appropriations
cr. budgetary fund balance

purchase order issued
dr. encumbrances
cr. reserve for encumbrances

when supplies and invoice are received
dr. reserve for encumbrances
cr. encumbrances
dr. expenditures (actual)
cr. vouchers payable

total fund balance equals TOTAL ASSETS less TOTAL LIABILITIES

unassigned fund balance is differnce between TOTAL fund balance and reserved for encumbrances budgetary fund balance

when is the encumbrances account debited?

the encumbrances account is debited and reserve for encumbrances budgetary fund balance is credited when a purchase order is approved.

how is a voucher payable recorded?

dr. expenditures
cr. vouchers payable
dr. reserve for encumbrances, budgetary fund balance
cr. encumbrances

what does the budgetary fund balance reserved for encumbrances represent a portion of?

it represents a portion of budgetary fund balance that has been segregated for expenditure on vendor performance, goods ordered but not yet received

what is the entry to record purchase order:

dr. encumbrances
cr. budgetary fund balance reserved for encumbrances

revenues are credited and property taxes receivable are debited when?

Cr. revenue
dr. property tax receivable
when taxpayers are billed for property taxes.

estimated revenues control account of a governmental fund type is eliminated when

the budgetary accounts are closed

recognize revenue from property taxes for debt service fund when

funds from the levy are measurable and avail to the district

what focus do governmental funds use

current financial resources measurement focus

what does appropriations represent and what kind of account is it?

appropriations is a budegtary account. this account represents the governmental unit's approved spending

what do expenditures represent?

actual incurring of bills

what are encumbrances?

reservations of budgetary fund balance for purchase orders

what are vouchers payable

expenditures not yet paid and are included as a component of the expenditures amount

how is appropriations remaining calculated?

Budget: appropriations
Activity: expenditures
available appropriations

what are nonexchange transactions ?

taxes imposed on non exchange transactions like fines or property taxes

personal income taxes are derived tax revenues derived from?

exchange transactions

depreciation expense is not recorded in the

capital projects fund

enterprise fund, internal service funds and private purpose trust fund use

full accrual method

what does the debt service fund do?

services the debt of governmental entity.

what does the general fund do?

accounts for all financial resources of governmental entity

what does the capital projects fund do?

accounts for the financial resources for acquisition or construciton of major capital facilities not accounted for in proprietary funds

what does the special revenue fund do?

accounts for the proceeds of specific revenue sources that are legally restricted to expendtire for specified purposes.

capital assets donated to governmental unit are recorded at?

estimated fair value when received

capital lease of a governmental unit represents acquisition of a general fixed asset, acquisition should be reflected in fund financial statements as

a lease.

whats the journal entry for fund acquiring a lease (representing the acquisiton of a general capital assetA?

dr. expenditure- capital lease
cr. other financing source- capital lease

what are permanent funds used for

permanent funds are used to account for the principal that is restricted from being expended

interest expenditures should be recorded

when legally payable per the bond agreement

interest expendtiures should not be

accrued between payment dates

expenditures are recognized when incurred because

that is when they become measurable.
an exception to the rule is that interest and principal on longterm debt are recorded when they become due and payable, not when they accrue

when interest is paid using a governmental fund

increase interest expenditure
credit cash

interest expenditure decreases fund balance on the general fund B/S,

just as interest expense decreases he retained earnings of a commercial enterprise

billings for transporation services provided to other governmental units considered quasi-external transactions are treated as

revenues by the internal service fund.
dr. due from other funds
cr. operating revenues

an enterprise fund statement of cash flows includes

cash flows from operating activities, cash flows from noncapital financing activities, cash flows from capital and related financing activities and cash flows from investing activities

what is an enterprise fund used to account for?

provision of goods and services 1. that are financed mainly by user charges
or 2 for which the determination of periodic income is appropriate

through an internal service fund, city operates a service center to other governmental units. bill to other governmental units occurs. what is JE?

dr. due from other funds
cr. operating revenues control

what are interfund transfers out?

deductions from gross revenues in debt service fund

interfunds transfers in

additions to gross revenues in the internal service fund

what are the required statements for enterprise funds?

statement of net assets (balance sheet) , statement of revenues and expenses (IS) statement of cash flows, footnotes.
also include management discussion and analysis and required supplementary information

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