Governmental Accounting exam 2

interfund service ; accounts

think you sold/provided someone something ; use revenue expendtiure

Reimbursement

think compensation we fix the original expense

transfer; accounts

giving money and no repayment ; ofs/ofu

general fund

·      Accounts for financial resources not accounted for and reported in another fund

·      Current liabilities

·      Governmental funds (money came in but wasn’t earned) other financing source

·      Revenue

·      Expenditures

·      No long-term capital assets (expensed as purchased)

·      No long-term liabilities

·      Current focus

When property taxes are levied we:

Dr. Taxes Receivable

Cr. Revenue (needs to measurable and available 60-day rule check slides)

when property taxes are uncollectible we:

Dr. Taxes Receivable

Cr. Allowance for Uncollectible taxes

Cr. Revenue

when taxes are written off we:

Dr. Allowance for uncollectible taxes 5000

Cr. Taxes receivable

T/F revenue and expenditures are recorded when written off

false

borrowing tax anticipation j/e

Dr. cash

Cr. Tax anticipation note payable

repayment of tax anticipation notes

Dr. tax anticipation note payable

Dr. interest expenditure

Cr. Cash

what is meant by quasi external?

; b/w 2 funds inside the same government but we account for it like it happened with an outside customer/business

what is a special item?

Significant , unusual or infrequent , within managements control

what should the general fund record when transferring cash to the debt service fund for repayment of the interest and principal?

dr. ofs-transfer out

cr. cash

things that increase fund balance

·      Revenues

·      OFS-Transfer in

·      Special Items

things that decrease fund balance

·      Expenditures

·      OFU-transfer out

j/e to close the budget

dr. appropriations

cr. est revenues

dr/cr. budgetary fund balance

minor fund guidelines

general fund can never be minor

doesn’t meet both tests

combined with other nonmajor funds in one column

serial bonds

money is transferred in, payments made, and little to no balance at year end

term bonds

all the principal of bond is due at maturity

deferred serial bond

may not start immediately for more than one year bonds are used

endowment

a gift in which the donor may require the original principal to be preserved while investment earnings support a designated purpose.

internal funds

Used to report activities that provide goods and services to other funds, departments or agencies

enterprise funds

Used to report activities in which users are charged a fee for goods or services

net investment in capital assets

net capital assets minus related outstanding debt

restricted net position

resources subject to qualifying external restricions

unrestricted net postition

the remaining leftover net position

derivative

a financial contract whose value depends on asset, obligation, or price

effective hedging derivative

used to reduce financial risk; reported as deferred inflows or outflows

investment

used to earn a return; g&l are recognized in the period value changes