ACIS+4124_5124+Chapter+7+Powerpoints+-+Student

ACIS+4124_5124+Chapter+7+Powerpoints+-+Student - ACIS...

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1 ACIS 4124/5124 Chapter 7 Accounting for the Business-Type Activities of State and Local Governments
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2 Reasons for use Improves management of business- type activities Improves management of common resources by placing them under centralized management and control Proprietary Funds
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3 Use accrual basis Capital assets and long-term liabilities recorded within the funds Generally budgetary accounts are not integrated into the general ledger Depreciation expense and accumulated depreciation are recorded and reported Proprietary Funds—Accounting Characteristics
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4 Required Financial Statements Statement of net assets (or balance sheet) Statement of revenues, expenses, and changes in fund net assets (operating statement) Statement of cash flows (differs under GASB)
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5 Assets - Liabilities = Net Assets Proprietary Funds Accounting Equation Unrestricted Restricted (e.g., for payment of debt service) Invested in Capital Assets, Net of Related Debt
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6 Statement of Net Assets Classified statement Current assets shown in order of liquidity Net assets - divided into three categories Invested in capital assets, net of related debt Restricted—by external parties: contracts, legal requirements, or donor stipulation Unrestricted
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7 Operating Statement Revenues and expenses identified as operating or non-operating Subtotals shown for operating revenues, expenses and income Revenues shown net of discounts and allowances Interfund transfers, special items, extraordinary items & capital contributions shown after nonoperating revenues/expenses
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8 Cash flows defined as cash and cash equivalents Direct method used Four categories of cash flows Operating Noncapital financing Capital and related financing Investing Statement of Cash Flows
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9 Operating Activities Receipts from customers and from sales to other funds Payments to suppliers, employees, and for purchases from other funds Statement of Cash Flows
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10 Noncapital financing Proceeds from debt not for capital assets Grants, subsidies & taxes not specifically
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This note was uploaded on 03/28/2012 for the course ACIS 4124 taught by Professor Dr.easterwood during the Spring '12 term at Virginia Tech.

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ACIS+4124_5124+Chapter+7+Powerpoints+-+Student - ACIS...

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