Fund accounting, government-wide statements, nonprofit net assets and revenue recognition.
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- What is fund accounting?
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An accounting system that separately tracks restricted and unrestricted resources by fund, used primarily by governments and nonprofits to demonstrate compliance with restrictions and fund purpose.- Name the two broad categories of governmental funds.
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Governmental funds (General, Special Revenue, Capital Projects, Debt Service, Permanent) and Proprietary funds (Enterprise, Internal Service).- What is the General Fund?
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The fund that accounts for all financial resources not required to be accounted for in another specific fund; handles the government's general operations and services.- What is a Special Revenue Fund?
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A governmental fund used to account for the proceeds of specific revenue sources restricted for specific purposes.- What is a Capital Projects Fund?
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A governmental fund that accounts for resources restricted to the acquisition or construction of major capital assets.- What is a Debt Service Fund?
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A governmental fund used to account for the accumulation of resources and the payment of principal, interest, and other charges on long-term debt.- What is a Permanent Fund?
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A governmental fund used to account for resources that are restricted so that only earnings, not principal, may be expended.- What is an Enterprise Fund?
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A proprietary fund used to account for operations that function like a business and charge users for services (water, electric, transit systems).- What is an Internal Service Fund?
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A proprietary fund used to account for goods or services provided by one department to other departments within the government, charged at cost plus markup.- What is the accounting basis for governmental funds?
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Modified accrual accounting, which recognizes revenues when measurable and available, and expenditures when incurred.- What is the accounting basis for government-wide statements?
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Full accrual accounting, which recognizes revenues when earned and expenses when incurred.- What is the difference between expenditures and expenses?
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Expenditures are fund-level outflows (modified accrual) including capital outflows; expenses are government-wide outflows (full accrual) excluding capital assets.- What are the components of fund balance in a governmental fund?
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Nonspendable, Restricted, Committed, Assigned, and Unassigned fund balance.- What is Nonspendable Fund Balance?
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The portion of fund balance that cannot be spent because it is either not in spendable form (inventory, prepaid items) or legally or contractually required to be maintained.- What is Restricted Fund Balance?
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The portion of fund balance constrained to specific purposes by external parties (creditors, grantors, laws, regulations).
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