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Terms in this set (44)
What is the format for the government-wide statement of activities?
Displays the net expense or revenue of each function or program reported for the governmental activities of the government
What is a group of related activities that are aimed at accomplishing a major service or regulatory responsibility, such as Public Safety or Highways?
What is a group of activities, operations, or organizational units that are directed to the attainment of specific purposes or objectives, such as Highway Beautification or Youth Sports?
What is the calculation of Net (Expense) Revenue?
= Expenses - Program Revnues
What is added to Net (Expense) Revenue to obtain the change in net position for the period on the statement of activities?
General Revenues, any special or extraordinary items, and any transfers
What type of expenses are specifically associated with a function or program and should be reported on the line for that function or program?
What type of expenses are those that are not directly linked to an identifiable function or program and can be reported in more than one way (such as a separate line item)?
Is depreciation expense an indirect or direct expense?
Reporting in the net (expense) revenue format for the statement of activities requires a government to distinguish which two items?
Program Revenues and General Revenues
What type of revenues are reported in the functions/programs section of the statement of activities, where they reduce the epenses of each function or program or produce a net revenue or net expense?
What type of revenues are not directly linked to any specific function/program and thus are reported in a separate section in the lower portion of the statement of activities?
What are the 3 Categories of Program Revenues?
1. Charges for Services
2. Operating Grants and Contributions
3. Capital Grants and Contributions
What is included in Charges for Services?
charges to customers or others for both governmental and business-type activities. In governmental activities, it can include licenses and permits, fines and forfeits, and operating special assessments
What is included in Grants and Contributions?
Those items restricted by other governments, organization, or individuals for the operating purposes of a particular function or program and reported separate from those restricted for capital purposes
What should be reported as General Revenue?
All taxes, unrestricted earnings
In the statement of activities, what is reported below General Revenues?
Extraordinary items and special items
What are Extraordinary Items?
transactions or other events that are both unusual in nature and infrequent in occurrence
What are special items?
items within management's control that may be unusual in nature or infrequent in occurence
What should be reported last in the statement of activities?
What are significiant Items?
those that are beyond management's control but are unusual or infrequent in nature.
How should significant items be recorded?
as normal expenses, expenditures, or revenues, and be disclosed in the notes to the financial statements
What are interfund transfers?
involve moving resources from one fund to another within the same government
How are interfund transfers reported and where should they be reported in the statement of activities?
1. reported as an inflow in one activities column and as an outflow in the other activities column but eliminated in the Primary Government Total Column
2. on separate lines below general revenues
What accounts does the statement of activities include?
Revenues and Expenses
What is included in the fund financial statement: Statement of Revenue, Expenditures, and Changes in Fund balance?
Revenues, Expenditures, Other Financing Sources, and Other Financing Uses
What are revenues?
increases in fund financial resources other than from financing sources
What is classified as other financing sources?
Those resources that are transferred into a fund and increase fund balances. Examples include proceeds from bond issuances, sales of assets, and transfers of resources from other funds
What is an expenditure?
represent the cost to purchase a good or service. The outflow of resources
What is an expense?
represents the cost of a good or service consumed or expired during the period
What is other financing uses?
those resources transferred out of the fund and decrease fund balances. Examples include debt restructuring, and transfer of resrouces to another fund.
What is a government at a minimum required to prepare for the General Fund and all major special revenue funds?
What is the schedule of revenues, expenditures, and changes in fund balance - budget and actual presented as?
What is the budgetary account for:
3. Other Financing Sources
4. Other Financing Uses
1. Estimated Revenues
2. Appropriations and Encumbrances (Encumbrances Outstanding)
3. Estimated Other Financing Sources
4. Estimate Other Financing Uses
What is the normal balance of the operating statement account, Revenues, and the normal balance of its budgetary account, Estimated Revenues?
1. Revenue - Credit
2. Estimated Revenues - Debit
What is the normal balance of the operating statement account, Other Financing Sources, and the normal balance of its budgetary account, Estimated Other Financing Sources?
1. Other Financing Sources - Credit
2. Estimated Other Financing Sources - Debit
What is the normal balance of the operating statement account, Other Financing Uses, and the normal balance of its budgetary account, Estimated Other Financing Uses?
1. Other Financing Uses - Debit
2. Estimated Other Financing Uses - Credit
What is the normal balance of the operating statement account, Expenditures, and the normal balance of its budgetary account, Appropriations and Encumbrances?
1. Expenditures - Debit
2. Appropriations - Credit
3. Encumbrances - Debit
What is an Appropriation?
a legal authorization to expend cash or other financial resources for goods, services, and facilities
How should expenditures be classified?
2. Function or Program
3. Organization Unit
What is the primary classification of governmental revenue?
Within each fund in the classification of governmental revenue, what is the major classification?
What are the major revenue source classes commonly used?
2. Special Assessments
3. Licenses and Permits
4. Intergovernmental Revenues
5. Charges for Services
6. Fines and Forfeits
7. Miscellanous Revenues
What are the 4 Steps in the Disbursement Cycle?
4. Vouchers Payable
What is included in the classification of expenditures by character?
1. Debt Service
2. Capital Outlays
3. Current Expenditures
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