Advanced Financial Accounting
Advance Financial Accounting will focus on US Governmental accounting. Explaining the main focus of governmental accounting, the different type of funds used and the different type accounting process used.
Governmental accounting US Government can levi taxes no other form of accounting has this kind of power. The source of U.S. Governmental accounting is GASB (Governmental accounting standard board) the primary user of these Financial Statement are external users citizens/ School boards/ investor/ Creditors. Internal users are not consider primary user of this information governmental financial reporting is most concerned with Accountability that the resource on the book are real and the Governmental is responsible for them Interperiod equity That the current period revenues is sufficient to pay for current year expenses.
Fund accounting Fund are what make up difference segments of government they are both a fiscal equity and an accounting Equity.
Their are 3 main types of funds
- Governmental funds: these accounts for sources and balances of general governmental financial resources.
- Proprietary funds: account for business type activity
- Fiduciary accounts for resources held by a government as a trustee or an agent for the benefit of others
| General Funds | This fund accounts for eveerything not required to belong to another fund. Is use as a catch all and is always considered a major fund. |
| Special Revenue Funds | These accounts for revenue sources that are restricted or commited to be spent for specific purpose other than debt service or capital projects. |
| Capital Fund Project | Funds are restricted to the construction or acquisttion of capital facilities |
| Debt Services Funds | Funds restricted or committed for debt srrvices principles and interest expenditures |
| Permanent Funds | Account for endowment for which earnings are restricted to support governmental programs dedicated for a public purpose |
Proprietary Funds
| Enterprise Funds | These funds are bussines type funds that the public buy from the government and is supported by fees. It also use Accrual accounting method |
| Internal Service fund | Bussines type activities where other government agency buy their service like a car repair shop that only work on police cars. |
Fiduciary Funds
| Pension trust funds | Assets are held instrust to provide employee retirement benefits |
| Private Purpose trust funds | assets held in trust to benfit individuals |
| Investment trust fund | Accounts for the assets held in place for other government |
| Agency funds | Accounts for assets held in a custodial capacity |