Which of the following is an example of state revenue?
Which of the following statements reflects the proper accounting treatment for grant revenues? a. Unrestricted grants are recognized as revenue in governmental funds when cash is received and appropriate expenditures are incurred. b. Restricted grants are recognized as revenue in governmental funds when cash is received. c.
When should governmental fund revenues be recognized?
Jun 01, 2020 · The other $1,500,000 was received under a grant agreement that requires the funds to be used for specific health and welfare programs. The county accounts for the resources from both of these programs in a Special Revenue Fund. ... Which of the following statements reflects the proper accounting treatment for grant revenues? A Unrestricted ...
What determines the accounting and financial reporting for government revenue?
The county accounts for the resources from both of these programs in a Special Revenue Fund. Expenditures of that fund that qualified under the grant agreement totaled $900,000 in the year that the grant and entitlement were received. What amount of revenues should the county recognize in that year with respect to the entitlement and grant?
What is the difference between recognition of expenditures in governmental funds?
The Statement of Activities also reports program expenses net of applicable program revenues. GASB Statement 37 clarified that difference captions and additional categories for program revenues may be used. ... The modified accrual basis of accounting requires that proper accruals are made for the amount of unpaid salaries and related benefits ...
Why are designations reported as part of unreserved fund balance?
Because they typically arise from internal actions (management decisions) rather than actions external to the entity (encumbrances), designations are reported as part of unreserved fund balance. The amount and nature of the designation should be explained in a.
What is charge for services?
Charges for services are revenues that arise from charges to customers or applicants who purchase, use, or directly benefit from the goods, services, or privileges provided. Examples are rental fees for school buses or facilities, athletic participant or spectator fees, summer school tuition, or library fines.
What is fund balance?
Fund balance and net assets are the difference between fund assets and liabilities reflected on the balance sheet or statement of net assets. Because of the current financial resources measurement focus of governmental funds, fund balance is often considered a measure of available expendable financial resources.
What is unrestricted net assets?
Unrestricted is the amount of net assets that is not restricted or invested in capital assets, net of related debt. Governmentwide Financial Statements: Statement of Net Assets.
Why is the general fund important?
This is a particularly important measure in the general fund because it reflects the primary functions of the government and includes both state aid and local tax revenues. The relative amount of unreserved fund balance reflected in the general fund is used by rating agencies as a measure of financial strength of the government.
What is imposed nonexchange revenue?
Imposed nonexchange revenues result from assessments imposed on nongovernmental entities, other than assessments on exchange transactions. Property taxes, ad valorem taxes on personal property, and fines are common examples. A receivable is usually recognized at the time an enforceable legal claim arises.
What are the types of expenditures?
Types of Expenditures and Accounting Treatments. The major types of expenditures are operating, capital, debt service, and intergovernmental charges. Operating expenditures for governmental agencies include a wide range of expenditures. Often the largest portion relates to payroll and related employee benefits.