Create an account
Name the three types of local governmental units in the US.
General Purpose Local Governments, Special purpose, and Authorities and Agencies.
What do governmental entities have different than those of commercial enterprises?
Name the major differences between governmental and for-profit entities. There are 8. List the first 4.
1. Gov units collect resources and make expenditures to fulfill society needs. 2. Gov units lack a profit motive. 3. Gov entities have legal authorization to exist, tax, and make expenditures. Compliance with laws and regulations. 4. Gov entities use a comprehensive budgetary accounting to provide control.
List the other 4 differences between governmental and for-profit entities.
5. Primary purpose of Gov Acc is to measure & report stewardship over financial resources. 6. Gov Ent's may be required to est. separate funds to accomplish missions. 7. Many funds do not record fixed assets or long term debt. This is kept on separate record. 8. Accountability to be able to explain raising of funds to citizens & other govs.
History: What happened in 1984?
Gov Acc Standards Board (GASB) was formed. Statement 34 provided big change in gov reporting model.
What are the 5 elements of Financial Statements?
Assets, Liabilites, Deferred outflow or resources, Deferred Inflow or Resources, and Net Position (Outflow or Inflow of Resources).
What is Interperiod Equity?
Is a government's obligation to disclose whether current-year revenues were sufficient to pay for current-year benefits, or did current citizens defer payments to future taxpayers.
What is a fund?
a separate accounting group with accounts to record the transactions and prepare the financial statements of a defined part of the government entity that is responsible for specific activities or objectives.
What is an expenditure?
refers to a decrease in net financial resources available under the current financial resources measurement focus.
What is a governmental fund?
they are used to provide basic governmental services to the public. 1. General Fund, 2. Special revenue funds, 3. Capital projects funds, 4. Debt service funds, 5. Permanent funds.
What is a General Fund?
Accounts for all financial resources EXCEPT for those accounted for in another fund.
What is a Special Revenue Fund?
Accounts for the proceeds of specific revenue sources that are restricted for specific purposes. Examples include public libraries.
What is a Capital Projects Fund?
Accounts for financial resources for the acquisition or construction of major capital facilities that benefit many citizens, such as the tunnel at UVU.
What is a Debt Service Fund?
Accounts for the accumulations of resources for and the payment of, general long-term debt principal and interest.
What is a Permanent Fund?
Accounts for the resources that are restricted such that only earnings, but not principal may be used in support of governmental programs that benefit the government of its citizens.
What is an Enterprise Fund? (Proprietary Fund)
Accounts for operations of governmental units that charge for services provided to the general public through user fees. An example would be a public swimming pool.
What is an Internal Service Fund? (Proprietary Fund)
Accounts for the financing of goods or services provided by one department or agency to other departments or agencies of the government unit. An example would be a Motor Pool where other departments can rent vehicles from a Motor Pool.
This is the set of financial statements that presents the governmental unit's infrastructure assets and long-term debt.
Government wide financial statements.
At the present time, this body has the authority to prescribe generally accepted accounting principles for state and local government entities.
This is a fiscal and an accounting entity with a self-balancing set of accounts recording cash and other financial resources with all related liabilities and residual equities or balances and the changes therein that are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.
These are assets of the governmental unit and include roads, municipal buildings, sewer systems, sidewalks, and so forth.
This basis is used in funds that have a flow of financial resources measurement focus.
Modified Accrual Basis
These are the governmental funds.
The General, Special Revenue, Capital Projects, Debt Service funds and the Permanent Funds.
This account is debited when the general fund records a purchase order for goods or services.
This account is debited in the general fund when fixed assets are acquired. Assume that a purchase order to acquire the fixed assets was not recorded.
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