Free Essay

Governmental Accounting Homework

In: Business and Management

Submitted By waffelsz
Words 369
Pages 2
Questions 1-3, 1-4, 1-5, 1-6, 1-8, and 1-10
1-3. The GASB has responsibility for setting accounting and reporting standards for both state and local governments and governmental not-for-profit organizations. The FASB has responsibility for setting accounting and reporting standards for business organizations and nongovernmental not-for-profit organizations. The FASAB has the responsibility of setting accounting and reporting standards for the agencies and departments of the federal government.

1-4. The museum’s accountant is wrong because the Fayette Rodeo Museum is a nongovernmental not-for-profit organization which means that it is independent of governments which means it can only follow FASB standards. Governmental not-for-profit organizations are the ones who follow the standards established the GASB.

1-5. Interperiod equity refers to the concept of measuring whether current year revenues are sufficient to pay for the services that provided in the current year. It is significant because it helps to assess whether future taxpayers will have to pay for the burdens that were previously provided. If revenues are not sufficient, then someone has to pay.

1-6. Operational accountability uses government-wide financial statements, along with those of proprietary funds and fiduciary funds. Fiscal accountability uses governmental fund financial statements. Operational accountability’s measurement focus is based on the flow of economic resources, while fiscal is based on the flow of current financial resources. Lastly operational is accrual based, while fiscal is modified accrual based.

1-8. The three sections of a comprehensive annual financial report are an introductory section, financial section, and statistical section. An introductory section includes a title page, a contents page, a description of the government, and other items as seen appropriate by management. The financial section contains an auditor’s report, a management’s discussion and analysis, basic financial statements, required supplementary information, and other supplementary information like the combining of statements or individual fund statements and schedules. The statistical section contains a statistical section which presents tables and charts showing demographic and economic data. Minimum requirements are basic financial statements, management’s discussion and analysis, and required supplementary information.

1-10. The three required categories of net assets are permanently restricted, temporarily restricted, and unrestricted.

Similar Documents

Free Essay

Financial Accounting vs. Governmental/Not-for-Profit Accounting

...Please explain the difference between financial and governmental/not-for-profit accounting -- due on or before June 8th. If you have any questions, please let me know. Under the oversight of the Financial Accounting Foundation (FAF), Financial Accounting and Governmental/Not-for-Profit Accounting are regulated by the accounting and financial reporting standards set forth by the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB) respectively. Financial Accounting is the process that culminates in the preparation of financial reports on the enterprise for use by both internal and external parties of profit-seeking businesses and for nongovernmental not-for profit organizations. Users of these financial reports include investors, creditors, mangers, unions, and government agencies. Since governments exist for the well being of citizens by providing public services, not for the purpose of generating returns to the owner(s), Governmental/Not-for-Profit Accounting lacks a residual ownership claim and the organization’s purpose is something other than to provide goods and services at a profit; it emphasizes on budgets, legal compliance, and efficiency and effectiveness measures other than income. These governmentally related not-for-profit organizations may include colleges and universities, health care entities, museums, libraries, and performing arts organizations that are owned or controlled by......

Words: 250 - Pages: 1

Premium Essay

Governmental Accounting Project

...2011 Fresno County average of 16% and businesses within the city are poised to take advantage of the area’s highest per-capita taxable spending. Clovis is a full-service city and has been operating with a budget surplus for greater than ten fiscal years. Through a combination of appropriate spending controls, fee and tax level adjustments, and reserves for future emergencies, the city ended 2011 with total assets of $900M (up 2% over the prior year) and total liabilities of $253M (down 3% over the prior year). The accounting department within the City of Clovis has received annual recognition via a Certificate of Achievement for Excellence in Financial Reporting for the preceding twenty three years. Additionally, for the July 1, 2011 budget document, the city received the Government Finance Officers Association Distinguished Budget Presentation award for proficiency in: Policy Document Inclusion, Financial Plan competence, City Operations guides, Governmental Communications. Part 1: CAFR Analysis As is the case with all full-service cities, the City of Clovis prepares an annual Comprehensive Annual Financial Report (CAFR). The CAFR is divided into major sections, as follows: * Introductory Section * Financial Section * Statistical Section * Single Audit Section The Introductory Section contains information such as the Letter of Transmittal, city Organization Chart, and the listing of principal officials. The information in this section is presented...

Words: 2742 - Pages: 11

Premium Essay

Governmental Accounting

...Balances for the governmental funds. List the revenue source classes. Do they agree with those sources discussed in this chapter? Are expenditures reported by character? List the functional classifications under the current character classification. Do those classifications agree with those listed in the example shown in this chapter? Are Other Financing Sources and Uses presented separately? Does your report show transfers in? Transfers out? Capital leases? Proceeds of bonds? property, sales and use, and other taxes, license and permits, intergovernmental, charges for services, fines and forfeitures, investment earnings, rents and royalties, contributions/donations, and miscellaneous. Yes. Yes. General government, judicial, security/person & property, physical environment, mental and physical health, and culture and recreation. Yes. Yes. Yes. Yes. No. No. b) Look at the Budgetary Comparison Schedule in the RSI section of your annual Report (or Budgetary Comparison Statement, if that is used by your government) for the General Fund. Is the budgetary format used, or is the schedule in the format used for the Statement of Revenues, Expenditures, and Changes in Fund Balances? Does the report reflect the original budget, revised budget, and actual figures? Are variance columns presented comparing the actual with the revised budget and comparing the original with the revised budget? Is reconciliation between the budgetary basis of accounting and GAAP......

Words: 346 - Pages: 2

Premium Essay

Governmental and Not for Profit Accounting - Acct-567-61751

...Chapter 1: Introduction to Accounting and Financial Reporting for Governmental and Not-for-Profit Entities 1–3.Matching. Place the abbreviations corresponding to the appropriate reporting attribute(s) in the spaces provided for each financial statement. Include all that apply. Activities or Funds Basis of Accounting Governmental activities—GA Accrual—A Business-type activities—BTA Modified accrual—MA Governmental funds—GF Measurement Focus Proprietary funds—PF Economic resources—ER Fiduciary funds—FF Current financial resources—CFR (1) Activities or Funds Reported, (2) Basis of Accounting, (3) Measurement Focus Financial Statements Statement of net assets – government-wide: (1) GA & BTA (2) A (3) ER Statement of activities – government-wide: (1) GA & BTA (2) A (3) ER Balance Sheet – governmental funds: (1) GF (2) MA (3) CFR Statement of revenues, expenditures, and changes in fund balances – governmental funds: (1) GF (2) MA (3) CFR Statement of net assets – proprietary funds: (1) GA & BTA & PF (2) A (3) ER Statement of revenues, expenses, and changes in fund net assets – proprietary funds: (1) GA & BTA & PF (2) A (3) ER Statement of cash flows – proprietary funds: (1) GA & BTA & PF (2) A (3) ER Statement of fiduciary......

Words: 688 - Pages: 3

Free Essay

Accounting for Governmental and Nonprofit Entities

...ACC591 GNFP Spring Term, 2013 Prof Orpurt Homework #3 Due: Friday April 19 by 5pm. I prefer that you drop off a printed or NEATLY written paper version of your homework. Question 1: A wealthy donor promised $1 million to the local art museum to expand the size of its building, contingent on the museum obtaining a grant from the State Endowment for the Arts of at least $500,000. Upon completing the signed agreement with the donor, the museum should: A. Record a debit to Contributions Receivable-Temporarily Restricted in the amount of $1,000,000. B. Record a debit to Contributions Receivable-Temporarily Restricted in the amount of $500,000. C. Not make a journal entry until the conditions of the agreement have been met. D. Either A. or C. are permissible, depending on the museum’s established policy. Question 2: Sharon Helper, a local CPA, volunteered her time to develop a new computerized accounting system for an after-school development program for disadvantaged children. If Sharon had not volunteered her time, it would have been necessary for the organization to hire an accountant for this project. The value of Sharon’s time devoted to this project should be recorded as: A. Contributed revenue. B. A supporting services expense. C. Neither A. nor B. are correct. D. Both A. and B. are correct. Question 3: A nongovernmental not-for-profit animal shelter receives contributed services from the following individuals valued at their normal billing rates: Veterinarian provides......

Words: 1165 - Pages: 5

Free Essay

Governmental Accounting

...the government shutdown, which occurred on October 1st, and last 16 days. This paper examines the importance of budgetary control and its challenges.   Introduction Non-profit and governmental agencies are categorized as public sector entities, with the primary objective of serving the public rather than making money. In America, governmental agencies “exist at the federal, state, and local levels”, and both governmental and non-profit organizations serve a wide variety of functions at levels of society (Wilson, Reck & Kattelus, 2010). Such services include: garbage disposal, school systems, building and the maintenance of roads, hospitals, community development and entitlement programs. Although non-profit and governmental entities operate differently from private sector entities, they still need money to provide goods and services to their customers. So, one might ask, where do these public sector entities get money from to operate The government gets its money through taxes, debt (borrowing money), income (participating as a vendor in the free market), fines and inflation (printing money) (Gardiner, 2009). Non-profit organizations receive its funding through grants distributed by the government, or donations from private sector entities (Gardiner, 2009). In order to operate, governmental and non-profit entities need to create budgets, so that the entities can operate in an efficient and effective manner. According to Wilson et al., “a budget is a plan of financial......

Words: 3746 - Pages: 15

Premium Essay

Financial Accounting Homework

...SPA Mentoring Akuntansi Keuangan 1 Dilarang Memperbanyak Mojakoe ini tanpa seijin SPA FEUI Mojakoe dapat didownload di Fb: SPA FEUI Twitter: @spafeui SPAMentoring  UTS   Akuntansi  Keuangan  1     Problem  1-­‐Conceptual  Framework   State   the   accounting   assumption,   qualitative   characteristic,   or   element   that   is   most   applicable   in   the   following  cases.   1. Qualitative   characteristic   being   employed   when   companies   in   the   same   industry   are   using   the   same   accounting  principles.   2. Quality  of  information  that  confirms  users’  earlier  expectations.   3. Imperative  for  providing  comparisons  of  a  company  from  period  to  period.   4. Ignores  the  economic  consequences  of  a  standard  or  rule.   5. Requires  a  high  degree  of  consensus  among  individuals  on  a  given  measurement.   6. Predictive  value  is  an  ingredient  of  this  fundamental  quality  of  information.   7. Obligation  to  transfer  resources  arising  from  a  past  transaction.   8. Increases  ownership  interest.   9. Declares  and  pays  cash  dividends  to  owners.   10....

Words: 2217 - Pages: 9

Premium Essay

Governmental Accounting Standards Board 34

...Governmental Accounting Standards Board 34 What would our country like without any rules and regulations or even our Declaration of Independence? We would probably be one giant disorganized country. There are times when we feel that our government can over regulating, but some fail to understand that the government is the people and society. Society has created organizations that even monitor our own government. One organization is the Governmental Accounting Standards Board (GASB). This is “an authoritative accounting and financial reporting standard-setting body for government entities” (Granof 2002). Their main objective is to ensure that financial reporting needs are meeting for the financial users. This goal is very difficult to accommodate to all users. Therefore, GASB continues to create new standards for financial reporting for state and local governments. One of the recent major obstacles for GASB was to produce standards for full accrual basis accounting for all state, local, and not-for-profit entities. This would allow for cost/loss in an entity’s capital assets and infrastructure. This can be distributed over the useful years of life instead of the initial year. In using the cash method, the value of physical assets and the depreciation on infrastructures such as roads, bridges, sewers, and drainage systems is not shown on the books. On average, most infrastructures decline in usefulness or value over a period of 20 to 50 years. This new standard thus......

Words: 774 - Pages: 4

Premium Essay

“Why Governmental Accounting and Financial Reporting Is—and Should Be—Different”

...“Why Governmental Accounting and Financial Reporting is—And Should Be—Different” The paper “Why Governmental Accounting and Financial Reporting is—And Should Be—Different” compares governmental accounting and financial reporting to that of the approach used in for-profit business enterprises. It also states specific reasons why governments should be different. There are environmental differences between governments and businesses that call for a different approach. First, governments have different purposes for their operations. For-profit entities strive to create wealth and to meet return on investment goals. While governments on the other hand are actually trying to enhance or maintain quality of life with services that are dictated by public policy goals. They also must consider efficiency, effectiveness, and economy when they evaluate public policy. Secondly, governments and for-profit business entities differ in the way they generate revenue. Governments generate income through involuntary taxes. Customers of for-profit business entities have a choice of what services they purchase and where they buy. The same does not apply for the governmental customer. The users of their reports also differ. Citizens and their elected representatives are users of government reports. They are as interested in the “why” as they are the “how much” when they read a financial report. They use governmental financial reporting to support their discussions of public policy such as......

Words: 383 - Pages: 2

Premium Essay

Accounting Homework September 16 2014

...ACCOUNTING HOMEWORK September 16 2014 Toolbox Practice Problem 1 Elaine Consulting incorporated on February 1, 2015. The company engaged in the following transactions during its first month of operations. Feb. 1 Issued capital stock in exchange for $800,000 cash Feb. 5 Borrowed $100,000 from the bank by issuing a note payable. Feb. 8 Purchased land, building, and office equipment for $750,000. The value of the land was $150,000, the value of the building was $540,000, and the value of the office equipment was $60,000. The company paid $200,000 cash and issued a note payable for the balance. Feb. 11 Purchased office supplies for $800 on account. The supplies will last for several months. Feb. 14 Paid the local newspaper $500 for a full-page advertisement. The ad will appear in print on February 18. Feb. 20 Several of the inkjet printer cartridges that were purchased on February 11 were defective. The cartridges were returned and the office supply store reduced the company’s outstanding A/P balance by $200. Feb. 22 Performed consulting services for $14,000 cash. Feb. 24 Billed clients $16,000. Feb. 25 Paid salaries of $12,000 Feb 28 Paid the entire outstanding balance owed for office supplies purchased on February 11. REUIRED 1. Prepare journal entries for the above transactions. 2. Post each entry to the appropriate ledger accounts (use the T-account format). 3. [Prepare a trial balance—we will do this during class] Toolbox Practice Problem......

Words: 813 - Pages: 4

Free Essay

Intermediate Accounting Homework

...establishing accounting standards is basically saying they want you all accounting firms and accountants to be uniform. They don’t want any outliers doing something completely different on their accounting reports when another accountant is following the set of standards given to him by AICPA and FASB. FASB has a need for balancing their accounting considerations and economic consequences. Political process is basically a process that forms and administrates public policy that is usually between the interaction between social groups and political institutions. Sometimes it is even between political leaders and the public opinion. Economic consequences of accounting standard-setting means accounting standards can have detrimental impacts on the wealth levels of the providers of financial information. FASB has been around throughout the years trying to keep up to date with all of the accounting standards and forming them around what everybody finds understandable. The Accounting Principles Board was always superseded by the FASB statements, that were recognized as accepted practices and constituted as the requirements to be followed by all business. Statements of the Financial Accounting Standards Board are currently represented by the accounting profession’s authoritative pronouncements on financial accounting and reporting practices. How politics influence the creation of accounting standards? The accountancy profession has been setting international accounting standards......

Words: 344 - Pages: 2

Free Essay

Governmental Accounting

...CHAPTER 3: GOVERNMENTAL OPERATING STATEMENT ACCOUNTS; BUDGETARY ACCOUNTING OUTLINE |Number |Topic |Type/Task |Status | | | | |(re: 15/e) | |Questions: | | | | |3-1 |Distinguishing characteristics of fund-based and government-wide |Identify and describe |New | | |financial statements | | | |3-2 |Distinguishing direct and indirect expenses |Define and describe |New | |3-3 |Statement of activities format |Describe |3-2 revised | |3-4 |Program and general revenue |Distinguish |Same | |3-5 |Extraordinary compared with special items |Define and compare |3-5 expanded | |3-6 ...

Words: 5171 - Pages: 21

Premium Essay

Accounting Homework

...within one year of the balance sheet date. _t 11. Cumulative net income that has not been distributed to the owners of a corporation as dividends. _n 12.The difference between gross profit and operating expenses. Also referred to as operating income and earnings from operations. _i 13.Increases in net assets from incidental transactions and other events affecting an entity during a period except those that result from revenues or investment by owners. _w 14.A presumption that the entity will continue in existence for the indefinite future. _m 15.Net sales less cost of goods sold. Chapter 2 Multiple Choice 1. Which of the following is not a correct expression of the accounting equation? a. Assets – Liabilities = Owner’s equity b. Net assets = Liabilities + Owner’s equity c. Assets = Liabilities + Owner’s equity d. Net assets = Owner’s equity 2. Partnerships, as contrasted with corporations, can be characterized as being relatively a. easier to form, less risky to be an owner of, and easier to raise large amounts of capital for. b. easier to form, more risky to be an owner of, and harder to raise large amounts of capital for. c. harder to form, more risky to be an owner of, and harder to raise large amounts of capital for. d. None of the above is accurate. 3. The owner’s equity section of a balance sheet contains two major compartments: a. Common Stock and......

Words: 3569 - Pages: 15

Premium Essay


...activities conducted under internal service fund and enterprise funds ·       basis of accounting used by proprietary funds ·       financial statements required by proprietary funds ·       net position classification for proprietary funds ·       requirements for when enterprise funds are required ·       cash flow statement of proprietary funds – categories and items ·       long term liabilities of enterprise funds on Net Position Statement- when should they be shown? ·       Nature of fiduciary funds ·       Use and nature of Agency funds ·       Defined-benefit versus defined contribution plans/differences. ·       Use of Pass-through grants- accounting treatment ·       investment trust fund- when used ·       Private purpose trust funds purpose ·       Other post employment benefits- description ·       calculation of net pension liability ·       Objectives of financial reporting by state and local governments ·       Tests for potential component units ·       What is included in the introductory, financial and statistical section. ·       Calculation of net investment in capital assets- what causes changes in categories ·       Statements issued by governmental and proprietary funds. ·       Definition of a reporting entity ·       Reconciliations required by GASB for statement of net position and operating statements ·       Distinction between governmental and nongovernmental NFP ·       statements required of not-for-profit......

Words: 259 - Pages: 2

Free Essay

Homework Week 1 Accounting

...identified in the Governmental Accounting Standards Board's Why Governmental Accounting and Financial Reporting Is—and Should Be—Different. The five environmental differences include mission/purpose, source of revenue, potential longevity, relationship with stakeholders, and role of budget. The mission/purpose is defined by the goals of the organization. The purpose of a commercial business is to make money. A non-profit organization’s purpose is to provide a service, without compensation from the people being served. The source of revenue comes from net income, which comes from a sale of goods or services in the private sector or in the public sector comes from tax dollars or donations. The longevity potential for a private business depends on the ability to generate a profit. In contrast a non-profit relies upon tax dollars or donations. The stakeholders of a private corporation are the owners/stockholder/investors. The stakeholders of a public organization are the taxpayers and general public being served. The budget in the private sector is flexible, depending on revenues and directors. The budget within a public organization is typically not flexible and has to be followed exactly. 1-3. Identify and briefly describe the three organizations that set standards for state and local governments, the federal government, and nongovernmental not-for-profit organizations. FASAB: Federal Accounting Standards Advisory Board provides accounting standards......

Words: 984 - Pages: 4