2009 F-8 Class Notes

2009 F-8 Class Notes - Becker CPA Review Financial 8 Class...

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Becker CPA Review – Financial 8 Class Notes 1 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. FINANCIAL 8 CLASS NOTES Financial 8 includes the following: I. GOVERNMENTAL ACCOUNTING OVERVIEW A. Governmental financial reporting is designed to demonstrate operational accountability for the entity as a whole and fiscal accountability for specific funds. Standards for accounting are established by the Governmental Accounting Standards Board ( GASB ). The Government Accountability Office ( GAO ) governs audits under the Single Audit Act . Funds are separate, independent self-balancing sets of accounts, similar to a “checkbook.” The three major categories of funds are Governmental ( GRASPP ), Proprietary ( SE ) and Fiduciary ( PAPI ). B. Government-wide financial statements are prepared using the accrual method of accounting to permit an economic resources measurement focus. This method is essentially the same as used in ‘for profit’ accounting and is covered in more detail in F9. C. Governmental funds use modified accrual basis of accounting and provide a current financial resources measurement focus . Revenues are recognized when measurable and available . Expenditures (not “expenses”) are generally recognized when resources are spent. There are no non-current assets in governmental funds. The five governmental ( GRASPP ) funds are the G eneral, Special R evenue, Debt S ervice, Capital P rojects and P ermanent funds. D.
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2009 F-8 Class Notes - Becker CPA Review Financial 8 Class...

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