What is an income statement?
An income statement measures how much money the company generates in the form of revenue and sales, and then how much actually turns into profit after subtracting cost of goods sold and operating expenses. Below is a very summarized income statement that illustrates the key components of any income statement. The goal is to maximize net income! Remember, the income statement is over a period of time while the balance sheet is a snapshot at a point in time.
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What is the objective of fund accounting in a governmental organization?
Fund accounting allows for government services and entities to monitor and report on its ability to comply with fund restrictions, as well as monitoring budgetary limitations. Fund accounting is guides by financial accountability and legal restrictions.
What government fund is recognized as the central or primary funding source?
The general fund is the primary fund that will be used by a governmental reporting organization. This fund is used to record all inflow and outflow of resources not associated with funds designated for a special purpose (special purpose funds). The general fund is considered to be the fund that taxpayers generally recognize as “the […]
What must the budgetary comparison include?
The budgetary comparison schedules will need to show the original budget, the final budget, and the actual budget (actual inflows and outflow. The entity may choose to include a separate column that shows the calculated variances between the final budget and actual results. The variance column is “optional” and not required.