Fund accounting, GASB standards, and nonprofit financial reporting concepts.
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- What is fund accounting?
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An accounting system that segregates financial transactions into separate, self-balancing sets of accounts based on the purpose of the fund.- Why do governmental and nonprofit organizations use fund accounting?
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To track financial activity by specific purposes and restrictions, ensuring compliance with donor restrictions and legal mandates.- What are the two broad categories of governmental funds?
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Governmental funds and proprietary funds.- What is the General Fund?
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The primary operating fund of a government that accounts for all resources not restricted to specific purposes.- What do Special Revenue Funds account for?
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Revenues that are restricted by law or donor intent for specific operating purposes.- What is the purpose of a Debt Service Fund?
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To account for the accumulation of resources and payment of principal and interest on long-term debt.- What do Capital Projects Funds track?
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Financial resources restricted for the acquisition or construction of major capital assets.- What are Enterprise Funds?
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Proprietary funds used to account for operations that charge fees and are intended to be self-supporting.- What is an Internal Service Fund?
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A proprietary fund that provides goods or services to other government departments on a cost-reimbursement basis.- Name one type of Fiduciary Fund.
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Pension Trust Fund, Investment Trust Fund, Private-Purpose Trust Fund, or Custodial Fund.- What does GASB stand for?
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Governmental Accounting Standards Board.- What is GASB's primary authority?
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Establish accounting and financial reporting standards for state and local government entities.- What are restricted resources in fund accounting?
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Assets that are limited by an external party (donor or law) to use for a specific purpose.- What are unrestricted resources?
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Assets that an organization may use freely for any purpose consistent with its mission.- What are the three categories of net assets in nonprofit accounting?
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Unrestricted, temporarily restricted, and permanently restricted.
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