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Exam 1 Gov Acc
Chapter 2
| Term | Definition |
|---|---|
| Government funds | Day to day operations, controlled by legally adopted budget, and the general fund is the biggest |
| Proprietary funds | similar to private-sector, mass transit, utilties, paid for by fees or chargers that cover operation and capital costs |
| Fidicuary funds | Resources that gov holds in trust or custodial capacity for others, public pension system, investment pools (property tax), gov report activity only if a government controls the assets of that activity |
| Measurement focus | What resources are being measured. All assets reported in proprietary funds but only financial resources available for spending are reported in gov funds |
| G funds focuses | focus current financial resources, legally dedicated resources, modified accrual basis of accounting |
| P funds focuses | focus economic resources, activies financed by user fees, accrual basis of accounting |
| F funds focuses | focus ecnomic resources, resources held for others, accrual basis of accounting |
| Accrual basis | Record when revenue is earned, record expenses when asset is consumed or expense is incurred |
| Modified accrual basis | record revenue when measurable and available, record expenditures generally when liability is incurred |
| Revenue recognition | Measurable and available, resources collectible within current period or soon enough thereafter to pay current bills. For governmental funds |
| Expenditure recognition | Decreses in financial resources. For governmental funds |
| General fund | Basis day to day operations, obtain resources from tax, sales, incomes, focus on increasing/decreasing of current financial resources, no capital assets reported, recievables and payments reported |
| Financial statements gov funds | Balance sheet, statement of revenues, expenditures, and changes in fund balance |
| Financial assets of gov funds | cash, investments, recievables, inventory, prepaid items |
| Short-term and matured long-term liabilities gov funds | Short: accounts payable, vouchers payable, salaries payable. Matured: due and payable of long-term debt |
| Gov fund accounting equation | Financial assets = short-term and matured long-term liabilities + fund balance (FA: cash, investments, recievables) |
| Special revenue funds | restricted or committed to spending for specified purposes other than debt service or capital projects, specific taxes or fees, may supplement specific sources of revenue with transfers |
| Sources general funds | taxes on real property, sales, and personal or corporate income, intergovernmental grants, licenses, fees, forfeitures, and fines, long-term borrowing, transfers in from other funds |
| sources special revenue funds | specific taxes, fees, and charges |
| Capital project funds | restricted for spending on capital outlays, not used to account for captial related outflows financed by proprietary or assets held by fudiciary funds |
| sources capital project funds | money from sold bonds, intergovernmental grants, transfer in from other funds |
| Capital project assets | Cash, temporary investments, receivables, and amounts due from other funds or governments |
| Capital project liabilities | payables |
| Debt service funds | account for and report on financial resources that are restricted or otherwise limited to spending for principal and interest on general long-term debt, collects our taxes to put toward principal and interest of bonds |
| Debt service assets | cash and investments |
| debt service liabilities | matured long-term debt principal and interest |
| sources debt service funds | Transfers in from general fund, property taces assessed specifically to service debt, investment earnings |
| Permanent funds | resources legally restircted so that earnings generated by the principal, not the principal itself, may be used to support programs that benefit the gov or its citizens |
| Permanent fund assets | cash and investments |
| permanent fund liabilties | amounts due to other funds |
| sources permanent funds | investment income, interest, dividends, and ent increase in the future value |
| Financial statements propietary funds | statement of fund net position, operating statement, statement of cash flows |
| Enterprise funds | Used for activities where products/services sold for a fee, primarly to external users, required to use if debt secured only by net revenues |
| sources enterprise funds | fees and charges from users |
| Internal service funds | provide goods and services within the reporting government on a user charge, achieve cost saving by consolidating similar support- type activities performed by agencies into a single unit or by purchasing by volume |
| Examples internal service funds | motor pool operations, data processing, printing services, supplies acquisition and distribution |
| Examples permanent funds | Library endowments and cemetaries |
| Examples enterprise funds | municipal water and sewer utilites, mass transit facilities, toll roads and bridges, airports, parking facilities, lotteries |
| Enterprise non current assets | capital assets (land, buildings, and equipment) |
| Enterprise current liabilities | debts that are due to be paid within a year |
| Financial statements of fiduciary funds | statements of plan net position, statement of changes in plan net position (additions and deductions reported rather than reveneus and expenses) |
| Pension trust funds | resourves controlled by gov unit and administrated though trusts or equivalent arrangemnets pension plans, healthcare plans, and other post employment benefit |
| Criteria for pension trust fund | 1. Contributions to and earmings of benefit plan are irrevocable. 2. asset in benefit plan dedicated to providing benefits to members. 3. assets legally protected from creditors of giving entites, plan adminstrators and memebers of defined benefit plans |
| Investment trust funds | invest and manage resources beloning to the gov itself and other govs. Sponsoring gov reports its portions of pool investments as assets |
| Criteria for investment and private purpose fund | 1. Assets controlled by the gov. 2. administrated through trust in which gov is not beneficiary. 3. dedicated to providing benefits according to its terms. 4. legally protected from government creditors |
| Private-purpose trust funds | gov unit controls assets and are not required to be reported in pension or investment trust fund |
| Custodial funds | state collect sales tax for itself and for countries within the state when counties "piggy-back" their own tax rates on top of the state tax rates, clearing account, undistributed country report custodial, undistributed state report gov or prop fund |
Created by:
omckenna52
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