What is an appropriation in budgetary accounting under GASB?
Appropriations is money that is set aside for specific governmental departments, agencies and programs. This is the amount that is authorized to be expended by the governmental unit in a given time period.
Appropriations are basically the same as an expense under U.S. GAAP, except under GASB, all spending has to be approved at the beginning of the year.
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In budgetary accounting, what are the two methods that can be used to record expenditures?
Expenditures are considered to be a governmental funds allocation of its funding dollars on expenses. The expenditure will be recorded when the voucher payable is recorded (full accrual). The modified accrual basis of accounting will not delay the expenditures until the cash payment is made. The two allowable methods are the purchase method and consumption […]
What are derived tax revenues in budgetary accounting?
Derived tax revenues will result from an assessment imposed by governments based on exchange transactions (e.g. personal income tax, sales tax etc.) The primary characteristics of derived tax revenues consist of: 1) The assessing government will impose the provision of resources on the provider. 2) The government’s assessment is on an exchange transaction.
What is the difference between a surplus and a deficit in budgetary accounting?
In budgetary accounting, a surplus will exist if estimated revenues exceed the amount of formally approved expenditures. A deficit will exist if estimated revenues are less than the amount of formally approved expenditures. The visual below shows how you can easily calculate a surplus or deficit!