Scribd
Upload
3 views2 pages

pblic

The document provides a matching exercise for various financial terms related to governmental accounting, followed by multiple-choice questions regarding funds and their purposes. It also includes discussion questions that differentiate between measurement focuses, types of governmental funds, and key financial concepts such as expenditures and encumbrances. Overall, it serves as a comprehensive overview of governmental accounting principles and fund management.

Uploaded by

nado6763
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
3 views2 pages

pblic

The document provides a matching exercise for various financial terms related to governmental accounting, followed by multiple-choice questions regarding funds and their purposes. It also includes discussion questions that differentiate between measurement focuses, types of governmental funds, and key financial concepts such as expenditures and encumbrances. Overall, it serves as a comprehensive overview of governmental accounting principles and fund management.

Uploaded by

nado6763
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Part I: Matching

1. Agency - H. Taxes collected on behalf of another governmental unit.


2. Capital projects - A. Construction of public buildings.
3. Debt service - J. Principal and interest payments on general long-term debt.
4. Enterprise - G. Costs of operating a municipal swimming pool.
5. General - D. Administrative expenses of the city manager’s office.
6. Internal service - B. Costs of a central purchasing and warehouse function.
7. Investment trust - E. Assets held for external government participants in the
government’s investment pool for the purpose of earning investment income.
8. Pension trust - I. Assets held in trust to provide retirement benefits for municipal
workers.
9. Permanent - F. Gifts in which the principal must be invested and preserved but the
investment earnings can be used for public purposes.
10. Private-purpose trust - C. Gifts in which the principal must be invested and preserved
but the investment earnings must be used to provide scholarships to children of police
officers who died in the line of duty.
11. Special revenue - K. Grant revenues restricted for particular operating purposes.

Part II: Multiple Choice

1. D. Appropriations minus the sum of expenditures and encumbrances.


o This ensures that sufficient funds are available to cover both actual expenditures
and outstanding commitments (encumbrances).
2. C. Capital Projects Fund.
o The Capital Projects Fund is used to account for financial resources restricted for
the acquisition or construction of major capital facilities.
3. A. Debt Service Fund.
o The Debt Service Fund is used to account for the accumulation of resources for,
and the payment of, general long-term debt principal and interest.
4. A. Enterprise Fund.
o The Enterprise Fund is used to account for services provided to the public on a
user-charge basis, such as a municipal electric utility.

Part III: Discussion Questions

1. Difference between economic resources measurement focus and current financial


resources measurement focus:
o Economic resources measurement focus accounts for all assets and liabilities,
both current and long-term. It is used in proprietary funds (Enterprise and Internal
Service Funds) and fiduciary funds.
o Current financial resources measurement focus accounts only for current
assets and liabilities. It is used in governmental funds (General Fund, Special
Revenue Fund, Capital Projects Fund, Debt Service Fund, and Permanent Fund).
2. Governmental-type funds and their uses:
o General Fund: Accounts for most routine operations of the government.
o Special Revenue Fund: Accounts for specific revenue sources legally restricted
for particular purposes.
o Capital Projects Fund: Accounts for resources used for the acquisition or
construction of major capital facilities.
o Debt Service Fund: Accounts for resources used to pay principal and interest on
general long-term debt.
o Permanent Fund: Accounts for resources where the principal is restricted, and
only earnings can be used for public purposes.
3. Relationship between Debt Service Funds and Capital Projects Funds:
o Capital Projects Funds are used to account for resources used to construct or
acquire capital assets.
o Debt Service Funds are used to account for resources used to pay the principal
and interest on debt incurred to finance those capital projects.
4. Distinguish between:
o a. Expenditures and Encumbrances:
 Expenditures: Actual payments made for goods or services.
 Encumbrances: Commitments related to unperformed contracts for goods
or services.
o b. Revenues and Estimated Revenues:
 Revenues: Actual inflows of resources.
 Estimated Revenues: Budgeted inflows of resources.
o c. Reserve for Encumbrances and Encumbrances:
 Reserve for Encumbrances: A portion of fund balance set aside to honor
encumbrances.
 Encumbrances: Commitments for future expenditures.
o d. Reserve for Encumbrances and Fund Balance:
 Reserve for Encumbrances: A restricted portion of fund balance.
 Fund Balance: The total unrestricted and restricted equity of a fund.
o e. Appropriations and Expenditures:
 Appropriations: Authorized spending limits for specific purposes.
 Expenditures: Actual spending against appropriations.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy