News: in accounting for state and local governments the modified accrual basis is required for

Enterprise fund and depreciation on the capital assets should be recorded. Which of the following depict the typical order of steps in the acquisition of goods and services by an activity accounted for by the General Fund? Measurable — the cash flow from the revenue can be reasonably estimated Available — the revenue is available to finance current expenditures to be paid within 60 days The accrual basis of accounting is adjusted when dealing with governmental funds. Which of the following is true regarding other financing sources and other financing uses? When supplies ordered for use in an activity accounted for in the General Fund are received at an actual price that is more than the estimated price on the purchase order, the Encumbrance account is: Credited for the estimated price on the purchase order. Under the modified accrual basis of accounting used by the General Fund, financial resources are considered available if the revenue or other financing source is expected to be collected: During the current fiscal period or a reasonable time after year-end defined by each individual government. Which of the following accounts of a government is credited when a purchase order is approved? Under accrual accounting, expenditures are recognized as soon as a liability is incurred measurable and available. When computers are ordered by the mayors office, the purchase should be recorded in the general fund as a debit to: If supplies that were ordered by a department financed by the General Fund are received at an actual price that is less than the estimated price on the purchase order, the department?s available balance of appropriations for supplies will be: The appropriations account of a governmental fund is credited when: If a state law requires that local governments prepare General Fund and special revenue fund budgets on a basis that differs from the basis of accounting required by generally accepted accounting principles (GAAP): The actual amounts in the budgetary comparison schedule should be reported using the government's budgetary basis.

Budgetary comparisons may be presented as a statement or as required supplementary information (RSI). Which of the following statements is true regarding the required disclosure of budgetary information? Governmental agencies have two key objectives: to report whether current-year revenues are sufficient enough to finance current-year expenses and to demonstrate whether resources are being used according to legally adopted budgets. b) Enterprise funds and internal service funds. That means that future obligations or anticipated revenues are not recorded in.

Expenses minus program revenues plus general revenues equals change in net position (E-PR+GR=Change).

It recognizes revenues when they … until the period the inventories and prepaid items are actually consumed or used. This bookkeeping system combines the simplicity of cash accounting with the more sophisticated ability of accrual accounting to match related revenues with expenses. Under the modified basis of accounting, revenue and governmental fund resources (such as the proceeds from a debt issuance) are recognized when they become susceptible to accrual. The accrual basis of accounting applicable to proprietary fund types requires that exchange revenues be recognized when _____________. However, under the modified accrual basis, Which of the following fund types uses the current financial resources measurement focus and modified accrual basis of accounting. According to GASB standards transfers should be recognized?

A liability is recorded in governmental funds when: Goods or services are received and the invoice is vouchered. The activities of a water utility department, which offers its services to the general public on a user charge basis, should be accounted for in: The measurement focus and basis of accounting that are most unlike those used by business entities are those used by: Which of the following governmental funds must be reported as a major fund? Investopedia uses cookies to provide you with a great user experience. Which of the following is not a category of program revenue reported on the statement of activities at the government-wide level? International Financial Reporting Standards, Generally Accepted Accounting Principles (GAAP), Cash basis accounting recognizes transactions upon the exchange of cash. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Which of the following neither increases nor decreases fund balance of the General Fund during the current period? Internal service funds are generally reported in the Governmental Activities column of the government-wide financial statements. Which of the following is a governmental fund type? Modified accrual accounting borrows elements from both cash and accrual accounting, depending on whether assets are long-term, such as fixed assets and long-term debt, or short-term, such as accounts receivable (AR) and inventory. regardless of the timing of related cash flows.

Expenditures, however, are recorded on a full accrual basis because they are always measurable when they are incurred. Reporting Requirements for Annual Financial Reports of State Agencies and UniversitiesGeneral Accounting. The sum total of these adjustments is referred to as the modified accrual basis . GAAP provided modifications to the general rule in the areas of inventories and prepaid items. In contrast, accrual accounting recognizes expenses when they are incurred, regardless of the payment status of the charges, and records revenue when a legal obligation is created. The account "Interfund Transfers In" would be classified in a General Fund statement of revenues, expenditures, and changes in fund balance as a(an): The process by which a legal valuation is placed on taxable property is called: For what funds do budgetary comparisons need to be presented in connection with the basic financial statements?

The governmental fund financial statements are prepared using the current financial resources measurement focus and the modified accrual basis of accounting. Which of the following terms refers to an actual cost rather than an estimate? For governments, it is a different story. In the period the inter-fund receivable and payable arise. As separate line items below General Revenues in the statement of activities. It enables government agencies to focus on short-term financial assets and liabilities. The Encumbrances account is properly termed a.

Seminole County utilizes the budgetary accounts required by GASB standards. Revenues are Which of the following will increase the fund balance of a government at the end of the fiscal year. Accrual accounting is an accounting method that measures the performance of a company by recognizing economic events regardless of when the cash transaction occurs. This indicates the company has fulfilled an obligation and has earned the right to collect, say at the point when the goods are shipped or at the completion of a service. Expenses are not recognized until they are paid, and revenue is not recognized until payment has been received.

In accounting for state and local governments the modified accrual basis is required for. The expenditure classification "Current Expenditures" is an example of which of the following types of classifications? The result of this rule is that almost all items recorded on the income statement are recorded using the cash basis, and items including accounts receivable and inventory are not recorded on the balance sheet. General Fund and major special revenue funds for which a budget is legally adopted. Note: To navigate this guide on a mobile device you must use the Table of Contents.

Gov't Funds. The County Commission of Canyon County adopted its General Fund budget for the year ending June 30, comprising estimated revenues of $13,200,000 and appropriations of $12,900,000.

This directly impacts the way fixed assets and long-term debt are documented. This systematic distribution of expenses or revenues allows future financial statements to have more comparability.

Modified accrual is a combination of cash basis and full accrual basis.

Modified accrual accounting is used and accepted by governmental agencies because they focus on current-year obligations. Fuel taxes earmarked for maintenance of roads and bridges. Under the modified accrual basis of accounting used by the General Fund, financial resources are considered available if the revenue or other financing source is expected to be collected: During the current fiscal period or a reasonable time after year-end defined by each individual government. The Comptroller’s office adopted the consumption method and agencies must use the Governmental Funds. The process by which a legal valuation is placed on taxable property is called. Under accrual accounting, a deferred credit is money that is received by a business, but which is not recognized as income until a later date. and fiduciary funds d) gov. Which of the following is true regarding financial reporting for internal service funds? Modified accrual accounting is an alternative bookkeeping method that combines accrual basis accounting with cash basis accounting. If transactions are not a current resource or use, they are not reported in the operating fund of the fund financial statement (for example, capital assets or long-term liabilities).

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