Untitled Flashcard Set

Statement of Activities

Displays functions/programs with their expenses and program revenues, calculating Net (Expense) Revenue.

Functions vs Programs

Functions are broad responsibilities like Public Safety; Programs are specific activities like Youth Sports.

Direct Expenses

Expenses directly traced to a function, such as police salaries.

Indirect Expenses

Expenses that cannot be directly tied to a function, often shown separately, like interest on long-term debt.

Program Revenues

Revenues generated through specific activities, including Charges for Services and Operating Grants.

General Revenues

Overall revenues from taxes, unrestricted grants, and investment earnings.

Unusual Items

Nonrecurring events that are abnormal for a government's environment, shown below General Revenues.

Interfund Transfers

Funds moved between governmental and business-type activities, impacting inflows/outflows.

Modified Accrual Accounting

Accounting method used for governmental funds focusing on current financial resources.

Balance Sheet Equation

Assets + Deferred Outflows = Liabilities + Deferred Inflows + Fund Balances.

Revenue Recognition

Recognized when measurable and available under modified accrual accounting.

Other Financing Sources

Inflows not classified as revenues, such as bond proceeds and transfers in.

Appropriations

Legal authority to spend funds within a budget.

Encumbrances

Assets set aside for future expenditure obligations, recorded before actual spending.

Estimated Revenues

Projected revenues included in the governmental budget.

Budgetary Control

Mechanism to control operations against budgetary limits.

Closing Budgetary Accounts

Process of resetting budget accounts at year-end by reversing entries.