ACC532 quiz 1

Question Answer
entities are governmental is they possess 1. elected officers or controlling majority appointed or approved; 2. ability to create and enforce a tax; 3.may issue tax-exempt debt; 4. government may dissolve and assume balance sheet
non for profit receives contributions without expectation of return
Organizational purpose of government exist for the well being of citizens by providing public services, not for the purpose of generating returns
sources of authoritative GAAP for state and local gvt GASB statements and interpretations, GASB implementation guides, GASB technical bulletins, literature of AICPA
Codification organized versions of accounting standards, advantage of using organized versions is that all relevant standards for a particular topic are presented together
Government wide Financials Statement of net position and statement of activities
Fund Basis Financials Government, proprietary, fiduciary
Government type funds modified accrual basis; general citizen services
proprietary accrual basis; business like activities such as water utitlity
fiduciary accrual basis; holding money in trust for others
accrual basis/economic resources measurement focus general business concepts of revenue and expense apply when recording exchange like transactions
modified accrual basis/current financial resources measurement focus applies to funds financd by taxes and other involuntary contributions; revenues are recorded when measurable and available
outflows are called expenditures
general fund accounts for most of the basic services provided by the government. Technically it accounts for and report all financial resources not account for and reported in another fun
special revenue fund account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purpose other than debt service or capital projects. theses include activities fundd by federal or state grants or by taxes
debt service funds account for and report financial resources that are restricted, committed or assigned to expenditure for principal and interest, other than interest or principal on proprietary or fiduciary activities
permanent funds account for and report resources that are restricted to the extent that only earning, and not principal, may be used for purposes that support the reporting government's programs
capital projects funds report financial resources that are restricted, committed or assigned to expenditure for capital outlays. it accounts for the purchase or construction of major capital improvements, except those purchased or constructed by a proprietary fund
internal service fund established for the purpose of measuring net income for a govt dept providing services primarily to other departments or agencies within the government, which it is the intent of the government that the department operate on a cost reimbursement basis.
enterprise fund established for the purpose of measuring net income for a governmental department providing goods or services primarily to outside consumers, in which it is the intent of the government that the department operate on a cost-recovery or profitable basis.
pension fund are used to account for assets provided to pension trusts. The earnings of these assets are used to pay the pensions of public (government) employees.
agency fund is used to account for resources held by a governmental entity which are not owned by the entity, but which are payable to some outside party such as another governmental unit. Assets = Liabilities
private purpose trust fund report all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments.
investment trust fund Accounts for the external portion of investment pools reported by the sponsoring government.