Exam 19: An Introduction to Accounting for State and Local Governmental Units

The following are transactions for the city of Springfield. a.Borrowed $20,000 by issuing a three-month,5% note. b.Paid $4,000 for equipment. c.Services for $1,000 were billed and collected. d.Year-end accrual of 3 months interest on note in (a). Required: Analyze the above transactions by using the accounting equation for a proprietary fund.

Under the modified accrual basis of accounting,revenues are recognized in the period

Which pronouncements have the highest level of authority for state and local governments?

Debt service fund accounts for resources to be used to pay principal and interest for general short-term debt.

Which type of fund is used to account for a government activity that sells goods or services either solely or almost solely to external customers?

Appropriations are approved or authorized expenditures.

The accounting equation for an agency fund is

What funds are reported in Government-wide financial statements?

The following are transactions for the city of Salem. a.Incurred salaries of $44,000 to be paid next month. b.Tax bills totaling $500,000 mailed to city residents. c.Paid salaries above. d.Computer equipment received in the amount of $11,000,to be paid in 30 days. Required: Analyze the above transactions by using the accounting equation for a proprietary fund.

What basis of accounting is used to prepare Government-wide financial statements?

General governmental activities provide goods and services to citizens without regard to their ability to pay.

Which fund would most likely report depreciation expense?

The following are transactions for the city of Springfield. a.Borrowed $20,000 by issuing a three-month,5% note. b.Paid $4,000 for equipment. c.Services for $1,000 were billed and collected. d.Year-end accrual of 3 months interest on note in (a). Required: Analyze the above transactions by using the accounting equation for a governmental fund.

Centralized data processing,central motor pools and garages,centralized risk-financing activities,and central stores typically would be accounted for using what type of fund?

Governmental accounting differs from corporate financial accounting primarily because

The key focus of government fund accounting concerns

A fund

Permanent funds report resources whose use is permanently restricted.