Exam 2: Fund Accounting

Which of the following transactions should the City of Highland account for in a trust fund?

Under the GASB Statement No. 34 reporting model, fund financial statements include separate sets of financial statements for:

Why do governments and not-for-profit entities use fund accounting?

Assume that Blackfoot County maintains its books and records in a manner that facilitates the preparation of fund financial statements. The county engaged in the following transactions during the current month. Prepare journal entries in the general fund to record these events. a. Paid salaries to county employees, $100,000. b. Borrowed $35,000 on a three-year note from a local bank to buy a county car. c. Purchased the county car for $35,000. d. Made a $7,000 payment on outstanding accounts payable. e. Collected $3,500,000 of the current property tax levy. f. Received a $50,000 grant from the State to support general government activities.

A fund is i. A separate legal entity. ii. A separate fiscal and accounting entity.

In addition to preparing fund financial statements, governments should also prepare consolidated financial statements to provide information on the financial position and operating results of the government as a single economic entity.

Fiduciary activities should be reported in fund statements and should be included in the consolidated government-wide statements.

Basis of accounting determines which of the following?