Jeter_AA_4e_SolutionsManual_Ch18

Jeter_AA_4e_SolutionsManual_Ch18 - CHAPTER 18 ANSWERS TO...

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Unformatted text preview: CHAPTER 18 ANSWERS TO QUESTIONS 1. Fund Entities Governmental Funds (1) General Fund- to account for all unrestricted resources except those required to be accounted for in another fund. (2) Special Revenue Funds - to account for the proceeds of specific revenue sources (other than expendable trusts, or for major capital projects) that are legally restricted to expenditures for specified purposes. (3) Capital Projects Funds- to account for financial resources segregated for the acquisition of major capital facilities (other than those financed by Enterprise Funds). (4) Debt Service Funds- to account for the accumulation of resources for, and the payment of, interest and principal on general obligation long-term debt. (5) Permanent Funds to account for resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the governments programs that is, for the benefit of the government or its citizenry. Proprietary Funds (6) Enterprise Funds to account for the provision of goods or services to the general public on a continuing basis where all or most of the costs involved are financed by user charges, or where periodic determination of revenue earned, expenses incurred, and /or net income is appropriate for management control, accountability, or other purposes. (7) Internal Service Funds- to account for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental unit, or to other governmental units, on a cost reimbursement basis. Fiduciary Funds (8) Pension (and Other Employee Benefit) Trust Funds used to report resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, other postemployment benefit plans, or other employee benefit plans. (9) Investment Trust Funds used to report the external portion of investment pools reported by the sponsoring government. (10) Private-Purpose Trust Funds used to report escheat property and to report all other trust agreements under which principal and income benefit individuals, private organizations, or other governments. (11) Agency Funds used to report resources held by the reporting government in a purely custodial capacity (assets equal liabilities). Agency funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. 18- 1 2. Government-wide statements are now required to help users assess the benefits and costs of various programs in a manner comparable to the appraisal of profit seeking businesses. For example, the revenues generated by a program can be compared to the expenses incurred by that program. The new requirements also enable a reconciliation to be made between the fund statements and these new government-wide statements....
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This note was uploaded on 01/06/2012 for the course ACCT 501 taught by Professor Jerris during the Fall '11 term at S.F. State.

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Jeter_AA_4e_SolutionsManual_Ch18 - CHAPTER 18 ANSWERS TO...

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