Advanced Accounting

For exam 1 (Ch. 10,13,1)

What separates governmental accounting from commercial

Not for a profit

Categories of governmental accounting

Governmental, Proprietary, Fiduciary

What is the purpose of governmental accouting

Traditional activities

Taxes

Health & saftey

What is the purpose of governmental fiduciary

trustee fund, non-government money, holding money for other entities, government does not directly benefit

What is the purpose of governmental proprietary

Similar to a for-profit entity, fee based activities

Governmental Funds

General

Special Rev

Debt Service

Capital Project

Permanent

General - Gov Fund

Catch all fund

Payment of gov. employees

Special Rev - Gov Fund

Revenue brought in from a specific source for a specific purpose

Permanent - Gov Fund

The base investment is kept intact, only the earnings can be used going forward.

Debt Service - Gov Fund

Used for the repayment of long term debt

Capital Project - Gov Fund

Used for specific large scale project like construction

Proprietary Funds

Enterprise, Internal Service

Enterprise

Charging to outside service

Internal Service

Anything done inside of the gov, vendor supply

Purchasing computers within the government

Fiduciary Funds

Investment Trust

Private Purpose Trust

Pension and Employee benefit trust

Custodial Fund

Investment Trust - Fiduciary Funds

Outside of the government (non-internal)

Private Purpose Trust - Fiduciary Funds

for private individuals or outside entities, not anyone within the government

Pension and Employee Benefit Trust - Fiduciary Funds

Custodial - Fiduciary Funds

Involves remittance to outside entity

Modified Accrual Basis

Current obligations, no long term assets or liabilities