Which measurement focus and basis of accounting are used for governmental funds?

The measurement focus for governmental fund operating statements should be the flow of financial resources measurement focus.

What measurement focus and basis of accounting should be used by a local government’s private-purpose trust fund measurement focus basis of accounting?

The Accrual Basis and Economic Resource Measurement Focus are used for Private-Purpose, Investment Trust and Pension Funds. : The economic resources measurement focus and accrual basis of accounting. are used for Agency, Private-Purpose, Investment and Pension trust funds.

Which basis of accounting is used by funds that have a current financial resources measurement focus?

modified accrual basis of accounting
On the other hand, funds that focus on current financial resources (governmental funds) use the modified accrual basis of accounting, which recognizes increases and decreases in financial resources only to the extent that they reflect near-term inflows or outflows of cash.

What basis of accounting do enterprise and internal service funds use?

accrual basis
Government funds use the modified accrual basis of accounting. Enterprise funds use the accrual basis of accounting. Measurement focus determines what transactions will be re- ported in the various funds’ operating statement.

What measurement focus do the government wide financial statements use?

Explanation: The government wide financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting.

What does the basis of accounting determines for accounting system?

The basis of accounting determines the extent of information that an accounting system can collect and therefore report. A pure, cash-based system can only report on cash balances and cash flows (inward and outward).

When should an internal service fund be used?

An internal service fund should be used only when the reporting government is the predominant participant in the activity; otherwise, the activity should be reported as an enterprise fund (Governmental Accounting Standards Board 34, ¶68).

Do internal service funds use accrual accounting?

Internal service funds are divisions of the State and should keep financial records as prescribed by the Governmental Accounting Standards Board (GASB). As a proprietary fund type, they use the full accrual basis of accounting, which is the same basis as used for private-sector business enterprises.

What is the basis of accounting in the proprietary funds Why?

Proprietary funds use the accrual basis of accounting and the economic resources measurement focus. Proprietary funds recognize revenues when they are earned and recognize expenses when a liability is incurred. Governmental Accounting Standards Board Statement No.

What are internal service funds used for?

An internal service fund is a fund used in governmental accounting to track goods or services shifted between departments on a cost reimbursement basis. An example of an internal service fund is a maintenance department that provides equipment maintenance services to other departments.

When should an internal service fund be included as part of business type activities as part of governmental activities?

Internal service funds should be used only if the reporting government is the predominant participant in the activity. Otherwise, the activity should be reported in an enterprise fund. For more information on accounting for these funds see 3.9.

What are internal service funds used for quizlet?

Internal service funds are intended to operate on taxes or other financing sources authorized by the legally enacted revenue budget for each year; therefore, they are classified as governmental funds.

What are examples of internal service funds?

Common examples of internal service include information technology, payroll, motor pool, budgeting, legal, accounting, and human resources.

Are internal service funds required?

6.10 The use of internal service funds, unless legally required, is not required by the generally accepted accounting principles (GAAP).

Which of the following is an example of an internal service fund?

Internal service funds are used to report an activity that provides services or goods to other funds, departments, or agencies to the county, the school system, or component unit on a cost-reimbursement basis. Examples of internal service funds are self-insurance and workers’ compensation funds.

Are internal service funds major funds?

Major Funds

Major fund reporting is applied only to governmental funds (i.e., general, special revenue, debt service, capital project, and permanent funds) and enterprise funds. Internal service funds are excluded from the major fund reporting requirements.

How are the internal service fund activities reported in the government-wide statement of net position?

In the government-wide statement of net position and statement of activities, internal service fund financial information is “collapsed” and reported in the Governmental Activities column of both government-wide financial statements, unless enterprise funds are the predominant participants in an internal service fund.

How are internal service funds and enterprise funds generally reported in government-wide financial statements?

In government-wide statements, enterprise funds are classified as business-type activities, whereas internal service funds are generally classified as governmental activities.

Which basis of accounting is used when presenting governmental and proprietary funds in the fund financial statements?

The government-wide financial statements and the proprietary and fiduciary fund financial statements report financial information on a full accrual basis. The governmental fund financial statements, however, report what is commonly referred to as current financial resources on a modified accrual basis.

How should fund information be reported in governmental and enterprise fund financial statements?

Governmental, proprietary, and fiduciary funds should be reported in separate sets of financial statements. … Each major fund should be reported in a separate column, and nonmajor funds should be combined and reported in a separate column.

What is the difference between internal service funds and enterprise funds?

Internal service funds and enterprise funds are both proprietary funds, but their reporting requirements differ because the transactions of internal service funds include the sale of products and services to the general fund. And enterprise funds include the transactions related to business activities.

Which of the following funds of a governmental unit uses the same basis of accounting as the special revenue fund?

Which of the following funds of a governmental unit uses the same basis of accounting in its fund financial statements as a special revenue fund? Capital projects funds.

What is governmental fund accounting?

Fund accounting is the way governments track revenues with purpose restrictions against the expenditures made for those g p purposes. • Fund accounting makes it easier to identify which monies are available for specific purposes.

On what should the governmental fund financial statements report?

On what do the government-wide financial statements report? Operational accountability. Fiscal accountability. … The governmental fund financial statements are intended to report on fiscal accountability.

Which of the following local government funds uses the accrual basis of accounting?

The three funds using the accrual basis of accounting are the (1) internal service fund, (2) airport enterprise fund, and (3) pension trust fund (fiduciary fund). The modified accrual basis of accounting is used by the general fund, capital projects fund, special revenue fund, and debt service fund.