PA 650 (WANG Chp 10) Financial Reporting and Analysis

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  1. Statement of Activities
    Also, statement of operations. Presents financial information for a government as a whole. Presents the expenditures and revenues at the more micro level than the statement of net position.
  2. Governmental Activities
    Services that are provided but are do generate enough or any revenue to offset expenses. Ex: Police
  3. Business Type Activities
    Services that are business like and can break even as the expenses they generate are offset by the revenues they generate. Ex: Sewer
  4. Expenses
    Expenses are classified and presented by functions or programs.
  5. Indirect Expenses
    Those expenses that support the provision of direct services. Ex: Fleet maintenance for PD
  6. Direct services
    Those services provided directly to a customer, resident or client outside the government. Ex: Police
  7. Revenues
    Government revenues include taxes, fees and charges, grants, investment earnings etc. They can be broken down into two categories, Program revenues and General Revenues
  8. Program Revenues
    Revenues generated through a specific program or function. Ex: City Clerk charges for copies for public record requests.
  9. General Revenues
    Revenues that are not associated with specific programs or functions. Ex: Taxes, intergovernmental revenues, grants and contributions not restricted to specific programs, investment earnings etc.
  10. Net (expenses) Revenues
    The difference between expenses and program revenues.
  11. Special Items
    Those revenues collected from a special source. Ex: money from the sale of public land.
  12. Transfers
    When resources are transferred from business type to governmental activities (or vice versa) without receiving anything in return (ie subsidy).
  13. Change in Net Assets (Position)
    Difference between the general revenues and the net expenses.
  14. Cash Basis Accounting
    The revenue is reported when the cash payment is received. The expense is recorded when the cash payment is made.
  15. Accrual Basis Accounting
    The revenue is reported when it is earned. The expense is recorded when resources have been used in the process of producing goods or services.
  16. Modified Accrual Basis
    The revenue is recorded when it is measurable and available. "Available" means that it must be collectible within one year. Expenditures are reported when they become legally obliged.
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PA 650 (WANG Chp 10) Financial Reporting and Analysis
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