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Chapter 3 - Chapter 03 Governmental Operating Statement...

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Chapter 03 - Governmental Operating Statement Accounts; Budgetary Accounting ` 3-1. The governmental fund financial statements report current financial resources information intended to help users assess current period fiscal accountability —whether revenues were raised only from authorized sources and expended for authorized purposes. As such, the governmental fund statements lack the mid- to long-term focus on economic resources and cost of services needed to assess operational accountability. 3-3. Depreciation expense is reported as a direct expense when it relates to capital assets that are clearly identified with a function or program because it captures a real cost of using capital assets to provide that service function or program. Even depreciation expense for infrastructure assets should be reported as a direct expense of the public works or transportation function, if that is the function responsible for those assets. 3- 1
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Chapter 03 - Governmental Operating Statement Accounts; Budgetary Accounting 3-4. City of Marion a . Estimated revenues total—FY 2011 $ 4,650,000 Appropriations total—FY 2011 4,800,000 Therefore, fund balance at the end of FY 2010 must be at least $ 150,000 or else the fund would be thrown into a deficit. General Ledger Subsidiary Ledger Debits Credits Debits Credits b . ESTIMATED REVENUES 4,650,000 BUDGETARY FUND BALANCE 150,000 APPROPRIATIONS 4,800,000
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