acct exam 2b

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  1. Know which funds are Governmental Fund.
    • general fund
    • capital projects fund
    • debt service fund
    • special revenue funds
    • permanent fund
  2. Know what basis of accounting is used for Governmental Funds.
    modified accrual accounting with current financial resources measurement focus
  3. Understand the purpose of the General Funds.
    To account for and report all financial reources not accounted for and reported in another funds
  4. Understand the purpose of Special Revenue funds
    To account for and report the proceeds of specific revenues that are restricted or committed to expenditures for principal and interest (not for capital projects or long term debt)
  5. Know the methods of accounting for supplies inventory.
    • may be recorded as in traditional business world (as an asset reduced along with increase in expenditures as consumed)
    • or
    • use purchases method recording all purchases as expenditure and remaining supplies recorded as asset in adjusting entry at year end
  6. Identify accounts used to record transactions in the General Fund.
    Cash; taxes receivable; taxes receivable estm un-collectable; interest & penalty receivable; estm un-collectable interest & penalties; due from state govt; accounts payable; notes payable; due to state govt; due to fed govt; deferred revenue; due to other funds; estm revenue control; appropriations control; estm other financing uses control; revenues control; expenditures control; budgetary fund balance; budgetary fund balance - reserved for encumbrances; unreserved fund balance, transfers out control; encumbrances control; special items
  7. Know how and when to record expenditures.
    recorded when liability incurred

    • DR expenditure control
    • CR accounts payable
  8. Know how and when to record grants received.
    record grants when received when unrestricted but only when used for that purpose when restricted

    • DR Due from state govt
    • CR Revenues control
    • when have to use as purpose before receipt

    • DR cash
    • CR Revenue Control
    • (when money has been received)
  9. Know how and when to record property tax revenue.
    property tax revenue is recognized levied when due unless will be paid more than 60 days after end of year

    • DR Taxes Receivable - Current
    • CR Estm uncollectible Current taxes
    • CR Revenue Control
  10. Understand how Tax Anticipation Notes Payable work.
    • banks loan govt money for a short term loan when working capital needed
    • DR cash
    • CR Tax Anticipation Note Payable
    • when borrowed
    • DR Tax Anticipation Note Payable & Expenditure Control (for interest due)
    • CR Cash
    • to pay it back when taxes are received
  11. Understand Special Assessment Levies.
    assessed only on taxpayers that are deemed to benefit from a servie or project to be paid by the proceeds (police protection or garbage removal are examples) may be for construction type or service type
  12. Be able to determine the effect of transactions on the Fund Balance of the General Fund.
    if there is a credit in a fund then it will deduct from the general fund a debit will add to the general fund
  13. Understand the purpose of the Capital Project.
    • is used to account for the financial resources that are to be used to aquire or construct major capital facilities from the period resources are first provided until project is complete for long term debt
    • exists only for period of time project is being done
  14. understand purpse of debt service funds
    this fund accounts for the payment of interest and principle for long term debt that are not accounted for in proprietary or fiduciary funds
  15. Know how and when transactions are recorded in the Capital Project.
  16. know how and when transactions are recorded in debt service funds
    • dr cash and cr other financing sources - transfers in for bonds
    • dr cash with fiscal agent cr cash and then dr expenditures - ____ cr maturied ___ payable when paying interest and principal on debt interest in the blanks for interest and bonds for the princincipal
  17. Know what Permanent Funds are used for.
    permant funds are iused to earnins for purpose provided on funds in special revenue fund they are nonexpendable and used for investment of principal amounts so that interest help to pay the outlays in the sepcial revenue funds
  18. Understand how transactions are recorded in Permanent Funds.
    • dr investment bonds and cr cash for the investment in bonds
    • dr cash and cr revenues - investment income - interest for receipt of interest
    • dr expenditures cr cash for use of interest
  19. Know how Governmental Funds are presented in Fund financial statements and Government – Wide financial statements.
    • as separate columns for major and one column for non major with a total column
    • in the government wide financial statements is listed under governmental activities
  20. Know which funds are Proprietary Funds.
    • Internal service fund
    • Enterprise funds
  21. Understand the purpose of the Enterprise
    to provide services to individuals or business for a fee charged to equal or exceed cost of service/good
  22. understand purpose of internal service funds
    • to provide service/goods to the govt for a fee that is equal to or greater than cost of service/good
    • expected to come out close to even extra funds in fund used to pay on interest
    • to help govt to monitor and control cost of doing business as well as to bring several multiple departments under one roof to control those costs
  23. Know the basis of accounting used in Proprietary Funds.
    accrual basis and economic resource focus of accounting just like for profit business
  24. Understand how transactions are recorded in Enterprise and Internal Service Funds.
    uses expenses and is basically similar transactions to a business
  25. Know how transactions between funds such as the General Fund and Proprietary Funds are recorded.
    transactions are due to and due from general fund or proprietary fund
  26. Understand how transactions affect the Net Assets of Enterprise and Internal Service Funds.
    the idea is that revenues should be in excess of expenses and then will have a positive net asset but if expenses outweight the revenues then there will be a negative net assets
  27. Know how Proprietary Funds are reported in Fund financial statements and Government – Wide financial statements.
    They are reported together under business type activities and then in a separate column under theie fund financial statements
Card Set
acct exam 2b
acct exam 2b
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