d-It would be reported as a note disclosure in the financial statements because it is deferred. Which of the following fund(s) will generally be the only fund(s) that can report a positive unassigned fund balance? b-General Fund and special revenue funds.
Q. What is modified accrual?
Modified accrual is a combination of cash basis and full accrual basis. Revenues are recognized when they are both measurable and available. 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.
Q. Which fund category uses the modified accrual basis of accounting What are the recognition rules for revenues and expenditures under the modified accrual basis of accounting?
In governmental funds, the recognition of expenditures occurs in accordance with the modified accrual basis of accounting. Expenses incurred in proprietary funds are recognized using the accrual basis of accounting.
Q. What are the fund balance classifications?
The new fund balance classifications will indicate the level of constraints placed upon how resources can be spent and identify the sources of those constraints. Constraints are broken down into five different classifications: nonspendable, restricted, committed, assigned, and unassigned.
Q. What is a negative fund balance?
A negative fund balance is sometimes called a deficit. FUND BALANCE: Excess of Assets over Liabilities. Also called Carry Forward, Balance Forward or Surplus, is the excess of fund assets over its liabilities.
Q. What is included in Nonspendable fund balance?
6. The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Q. How do you calculate fund balance?
Fund Balance = Assets – Liabilities Assigned – surplus revenues in special revenue funds, amounts set aside by Board other than legal reserves, and Reserve for Encumbrances.
Q. What is the purpose of Special Revenue Fund?
A special revenue fund is an account established by a government to collect money that must be used for a specific project. Special revenue funds provide an extra level of accountability and transparency to taxpayers that their tax dollars will go toward an intended purpose.
Q. What is the difference between general and special revenue fund?
The general fund is used to show all the governmental activities expect those activities that are compelled to be reported under other funds (Bogui, 2008). The Special Revenue Fund indicates funds that are restricted for specific purposes because of legal binding on the state or local government.
Q. What are some of the similarities and differences between a general fund and a special revenue fund?
They differ in that the General fund accounts for revenues and other financing sources raised to provide for all day-to-day-operating activities, whereas Special Revenue Funds are used to account for a specific revenue source that must be used only to finance a specified activity.
Q. What is general fund revenue?
According to NASBO, a general fund is “the predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes.” The three primary sources of general fund revenue are personal income tax, sales tax, and corporate income tax collections.
Q. What is the measurement focus for fund financial statements?
The measurement focus is concerned with the inflow and outflow of resources that affect a fund’s operating statement. The operating statement of a proprietary fund focuses on changes in economic resources, much like that of a private-sector business.
Q. What assets are viewed as current financial resources?
What assets are viewed as current financial resources? Current financial resources are primarily cash, investments, and receivables because they can be quickly turned into cash for spending purposes. These resources are expected to be used to meet the current period spending needs of the governmental funds.
Q. Does the general fund have a measurement focus?
In the general fund, the focus is on current year revenues (resources) used to provide services through current year expenditures. In contrast to the current financial resources measurement focus, there is an economic resources measurement focus model that is used with enterprise funds.
Q. Which of the following is the measurement focus and basis of accounting for the government-wide financial statements?
What measurement focus and basis of accounting are used for government-wide financial statements? Economic resources measurement focus/accrual basis.
