Which branch of local city and county government most commonly prepares the budget?
Executive branch
Why would a government be more likely than a not for profit organization to integrate its budget into its accounting system?
Lincoln County uses encumbrance accounting to control expenditures. Why would a government be more likely than a not-for-profit organization to integrate its budget into its accounting system? a) Because the amount of expenditures are likely to be greater.
Which of the following is a primary benefit of a performance budget?
Which of the following is a primary benefit of a performance budget? It encourages accomplishment of objectives by associating expenditures with outcomes.
When Should property tax revenues be recognized in government wide financial statements?
Revenues are recognized when they are available (revenues are collected in the current period or shortly after) and measurable. For property tax revenue to be considered revenue in the current period, it needs to be collected within that period or sixty days after the current period.
What is the general rule for recognizing property taxes as revenues?
What is the basic rule for recognizing property tax revenues in governmental type funds? Property tax revenues are recognized in the fiscal period for which the taxes are levied, provided the taxes are available.
Which of the following should be included in tax revenues for the current year?
Cards
| Term Which of the following should be included in tax revenues for the current year? | Definition None of these are included in current year revenues. |
|---|---|
| Term Under the modified accrual basis, revenues are considered susceptible to accrual if | Definition – to finance current period expenditures and objectively measurable |
What is the primary reason that governmental entities use fund accounting?
Fund Accounting: Many governmental reporting entities tend to use Fund Accounting when reporting their financial statements in order to provide greater detail to users.
Why do state and local governments use different funds to account and report their activities?
Governmental accounting maintains tight control over resources, while also compartmentalizing activities into different funds in order to clarify how resources are being directed at various programs. Some types of funds use a different basis of accounting and measurement focus.
What are the two main types of financial reporting done by state and local governments?
Only two financial statements make up the government-wide financial statements- the statement of net assets and the statement of activities.
Which of the following is the primary objective of external financial reporting statements )?
The primary objective of financial reporting for external users is to provide useful financial information about a business to help external parties, primarily investors and creditors, make sound financial decisions. These users are expected to have a reasonable understanding of accounting concepts and procedures.
Which of the following governmental funds must be reported as a major fund?
Major fund reporting is applied only to governmental funds (i.e., general, special revenue, debt service, capital project, and permanent funds) and enterprise funds.
Which of the following is an example of an internal service fund?
An internal service fund is a fund used in governmental accounting to track goods or services shifted between departments on a cost reimbursement basis. An example of an internal service fund is a maintenance department that provides equipment maintenance services to other departments.
What is a special revenue fund?
Special revenue funds—to account for the proceeds of specific revenue sources (other than trusts for individuals, private organizations, or other governments or for major capital projects) that are legally restricted to expenditure for specified purposes.
What is the minimum information required to be reported in the budgetary comparison schedule?
What is the minimum budgetary information required to be reported in those schedules? A schedule showing the original budget, the final appropriations budget, and actual inflows, outflows, and balances on a budgetary basis.
What is RSI in auditing?
Required Supplementary Information (RSI) – Office of the Washington State Auditor. skip to main content.
Which of the following is considered part of the required supplementary information for general purpose external financial reporting of a local government?
MD&A are a compulsory part of Required Supplementary Information for general purpose external financial reporting of a local government. Which of the following describes custodial credit risk in relation to a governmental entity?
For which funds are budgetary comparison schedules or statements required?
Mandatory budgetary comparisons are required for the general fund and major special revenue funds with legally adopted annual (biennial) budgets. The budgetary comparison should be presented on the basis of budgeting and can be presented as either a statement (audited) or a schedule (RSI).
What is the budgetary comparison schedule?
budgetary comparisons for the general fund and each major special revenue fund is required to present budgetary comparison schedules as RSI based on the fund, organization, or program structure that the government uses for its legally adopted budget. reported in the general fund and each major special revenue fund.
What is the general rule for reporting on funds in the fund level financial statements for fiduciary funds?
What is the general rule for reporting on funds in the fund-level financial statements for fiduciary funds? Separate columns should be shown for each fund type, such as Investment Trust Funds (rather than individual funds), in the fund-level financial statements for fiduciary funds.
Where is the Budgetary Comparison Schedule located?
Statement 34, paragraph 131, allows governments to present budgetary comparison schedules or statements “using the same format, terminology, and classifications as the budget document, or using the format, terminology, and classifications in a statement of revenues, expenditures, and changes in fund balances.” Exhibit …
Which of the following is required by GASB to prepare a budgetary comparison schedule?
Both Statement of Revenues, Expenses, and Changes in Fund Net Position and Statement of Cash Flows. The Budgetary Comparison Schedule must be prepared for the General Fund and each major special revenue fund that has a legally adopted budget.
What is in an operating budget?
The operating budget contains the expenditure and revenue generated from the daily business functions of the company. The operating budget concentrates on the operating expenditures, including cost of produce sold in the market or popularly known as cost of sold goods (COGS) and the revenue or income.