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