Reporting Direct and Indirect Expenses:
Expenses should be reported by function or program therefore,
Direct expenses those that are specifically associated with a function or program.
Examples, Public safety expense
Using the dual-track approach each transaction is recorded separately in the general
journals for the governmental fund and governmental activities
Accounting for Payroll
Payroll accounting is similar fo
Proprietary Funds: Accounting and operating activities of proprietary funds are conducted in a
business-like manner, focusing on the economic flow of resources through the use of accrual
There are two types of pr
What are General Capital Assets?
Long-lived assets used by activities financed by the general fund or other governmental
funds are called general capital assets.
Distinguished from capital assets that are specifically asso
Why Evaluate Governmental Financial Performance?
An early warning system of impending financial difficulty can serve to prevent
disruption in critical government services
Taxpayers now, more than ever, demand better perfo
What are Governmental Organizations?
Governmental organizations consists of two groups:
First Group: Federal government, state governments, Cities, towns, townships, villages,
counties, boroughs, and parishes are General Purpose Governments.
a. These gove
What Are General Long-term Liabilities?
Answer: Debt and other long-term liabilities that arise from the activities of
governmental funds that are not reported as fund liabilities of a proprietary or fiduciary
(Easy 20 minutes)
The three fund categories used in governmental accounting are:
Governmental-type funds These funds are used to account for general governmental activities
(the day-to-day operating activities) and resources that are restri
10.3) 1.) C 2.) C 3.) A 4.) C 5.) C 6.) D 7.) A 8.) B
10.4) 1.) True
3.) False. Interest on general obligation long-term debt is reported on the accrual basis in
government wide statements.
1.) 1.) B and C
5.) B and D
2.) 1.) True
3.) 1.) Notes to the financial statement
2.) Statistical section
3.) Management Disc
The three major activity categories of a state or local government:
1. Governmental Activities The government department that helps people with problem.
Protection of Life and Property. e.g. Police and Fire Protection.
Public works e.g. Streets and High