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73 terms

gp.govt

STUDY
PLAY
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?
general----permanent
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.
appropriations
less: expenditures
encumbrances
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?
object
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
encumbrances
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