a. Financial statements for governmental funds should be presented using the current financial resources measurement focus and the modified accrual basis of accounting . Revenues should be recognized in the accounting period in which they become available and measurable.
What financial statements are required for government accounting?
Required governmental fund statements are a balance sheet and a statement of revenues, expenditures, and changes in fund balances . Required proprietary fund statements are a statement of net assets; a statement of revenues, expenses, and changes in fund net assets; and a statement of cash flows.
What is governmental fund accounting?
Fund accounting is the way governments track revenues with purpose restrictions against the expenditures made for those g p purposes. • Fund accounting makes it easier to identify which monies are available for specific purposes.
What type of accounting principle is followed in government?
Consistency in financial reporting by governments is provided through accounting standards. GASB is the standard-setting authority of generally accepted accounting principles (GAAP) for state and local governments, including school districts.
What is the basis of accounting for fund financial statements?
The government-wide financial statements and the proprietary and fiduciary fund financial statements report financial information on a full accrual basis . The governmental fund financial statements, however, report what is commonly referred to as current financial resources on a modified accrual basis.
What are fund financial statements?
These statements present information about major funds individually and about non-major funds in the aggregate for governmental and proprietary fund types . ... Fiduciary statements include financial information for fiduciary fund types.
What are the 5 types of governmental funds?
According to the GAAFR (the Blue Book), governmental funds are “used to account for activities primarily supported by taxes, grants, and similar revenue sources.” Within the category of Governmental Funds, there are five types: General Fund, special revenue funds, debt service funds, capital projects funds, and ...
What are the four areas of accounting?
- Public accounting.
- Management accounting.
- Governmental accounting.
- Internal auditing.
What are the types of funds?
- Money market funds. These funds invest in short-term fixed income securities such as government bonds, treasury bills, bankers’ acceptances, commercial paper and certificates of deposit. ...
- Fixed income funds. ...
- Equity funds. ...
- Balanced funds. ...
- Index funds. ...
- Specialty funds. ...
- Fund-of-funds.
What are the fund accounting methods?
There can be two types of fund one is restricted , and the other is unrestricted. The restricted fund is used for a particular purpose, but unrestricted funds can be used for any purpose or general-purpose. The non-profit organization uses the same standard as profit organization uses.
Does the government have a balance sheet?
The Balance Sheets show the government’s assets, liabilities, and net position . When combined with stewardship information, this information presents a more comprehensive understanding of the government’s financial position. The net position for funds from dedicated collections is shown separately.
What is general fund in balance sheet?
It has all liabilities and assets as on the date of the preparation of the balance sheet by the organization. The excess of assets over the liabilities is termed as Capital Fund or the General Fund.
What is statement of financial position?
The statement of financial position, often called the balance sheet , is a financial statement that reports the assets, liabilities, and equity of a company on a given date. In other words, it lists the resources, obligations, and ownership details of a company on a specific day.
What are the 5 basic accounting principles?
- Revenue Recognition Principle,
- Historical Cost Principle,
- Matching Principle,
- Full Disclosure Principle, and.
- Objectivity Principle.
What are the 7 accounting principles?
- Accrual principle. ...
- Conservatism principle. ...
- Consistency principle. ...
- Cost principle. ...
- Economic entity principle. ...
- Full disclosure principle. ...
- Going concern principle. ...
- Matching principle.
What are the three golden rules of accounting?
- Debit the receiver, credit the giver.
- Debit what comes in, credit what goes out.
- Debit all expenses and losses and credit all incomes and gains.
