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Fund types that do not use modified accrual accounting?
Fund types that do not use modified accrual accounting include proprietary funds, such as enterprise funds and internal service funds, as well as fiduciary funds. These funds employ full accrual accounting, which recognizes revenues when earned and expenses when incurred, regardless of the timing of cash flows. This approach provides a more comprehensive view of a fund's financial status and long-term financial performance. In contrast, modified accrual accounting is primarily used for governmental funds, focusing on short-term financial management.
Why does an agency fund not have revenue and expenses?
Agency funds are purely custodial in nature which is why the fund wouldn't have revenue or expenses. The fund balance sheets show only assets (such as cash and investment) and liabilities (which is the amounts owned to the beneficiaries). Assets always equal liabilities which is why there are no net assets
What is net revenue from funds?
Net revenue from funds refers to the total income generated by a fund after deducting all associated expenses, such as management fees, operating costs, and any other relevant charges. It represents the actual financial benefit that a fund produces for its investors. This metric is crucial for assessing the fund's performance and profitability, as it provides insight into how effectively the fund is managing its resources. Understanding net revenue helps investors make informed decisions about their investments.
Does the concept of revenue less expense equaling an increase in equity or fund balance make sense to you?
Yes, the concept of revenue less expenses resulting in an increase in equity or fund balance makes sense. It reflects the fundamental accounting equation where net income (revenue minus expenses) contributes to the overall value of a business or organization. Essentially, when a company generates more revenue than it incurs in expenses, it enhances its financial position, leading to increased equity or fund balance. This principle is crucial for assessing financial health and sustainability.
When should Revenue from property taxes should be recorded in the General Fund?
Revenue from property taxes should be recorded in the General Fund when it is both measurable and available. This typically means that the revenue can be reasonably estimated and is expected to be collected within the current fiscal period or soon enough thereafter to be used to pay liabilities of the current period. Generally, property tax revenue is recognized in the period for which it is levied, aligning with the fiscal year in which it will be used to finance expenditures.
Is the enterprise fund full accrual or modified accrual accounting?
It's full accrual because it is considered part of the business type activities of a government. Something, such as the general fund, is considered modified because it is a budgetary tool and it would not consider future liabilities, only current.
Fund types that do not use modified accrual accounting?
Fund types that do not use modified accrual accounting include proprietary funds, such as enterprise funds and internal service funds, as well as fiduciary funds. These funds employ full accrual accounting, which recognizes revenues when earned and expenses when incurred, regardless of the timing of cash flows. This approach provides a more comprehensive view of a fund's financial status and long-term financial performance. In contrast, modified accrual accounting is primarily used for governmental funds, focusing on short-term financial management.
What is minimum number of special revenue funds you would expect a local government to have?
The local governments usually have multiple Special Revenue Fund.
Can you transfer an asset from a special revenue fund to the general fund that is depreciated but still has a value if sold at no cost?
yes
What fund would a township report depreciation a. General fund b. Special Revenue c. Capital Projects d.Internal Service?
general fund
What are some similarities and differences between a general fund and a special revenue fund?
The General Fund and Special Revenue Funds generally perform the same types of operating services. They are both governmental type funds and therefore use the same measurement focus and basis of accounting to account for and report on their activities. They differ in that the General fund accounts for revenues and other financing sources raised to provide for all day-to-day-operating activities, whereas Special Revenue Funds are used to account for a specific revenue source that must be used only to finance a specified activity
What are some similarities and differences between a general fund and special revenue fund?
The General Fund and Special Revenue Funds generally perform the same types of operating services. They are both governmental type funds and therefore use the same measurement focus and basis of accounting to account for and report on their activities. They differ in that the General fund accounts for revenues and other financing sources raised to provide for all day-to-day-operating activities, whereas Special Revenue Funds are used to account for a specific revenue source that must be used only to finance a specified activity
When was Revenue Equalization Reserve Fund created?
Revenue Equalization Reserve Fund was created in 1956.
What fund measures the states fiscal health?
The general revenue fund (?)
What is life assurance fund?
It is the excess revenue income over revenue expenditure for an insurance company.
How do magazine companies fund their magazines?
Magazines use advertising revenue to fund most of the publication costs.
State revenue cannot be used to fund what?
private businesses
