What are the different types of governmental funds?
There are five main types of government funds, which includes the general fund, the capital projects fund, the permanent fund, the special revenue fund, and the debt service fund.
1) The General Fund: The General Fund is used to account for ordinary operations of a governmental unit and is financed from taxes as well as other general revenues. All funds coming from the general fund are “current” fund and will not contain long-term assets or liabilities. The General Fund will be used for administrative and operational tasks of the governmental entity.
2) Capital Projects Fund: The Capital Projects Fund is a governmental fund that is used for tracking the financial resources used to acquire or construct major capital assets.
3) Permanent Fund: The Permanent Fund is a fund used to report resources that will legally restrict the entity to the extent that income, and not principal, will be used to support the governments programs or the benefit of the general public.
4) Special Revenue Fund: The Special Revenue Fund is a set up to account for revenues from specific taxes to finance certain governmental activities.
5) Debt Service Fund: The Debt Service Fund is set up to account for payment of principal and interest on both short-term and long-term debt for government entities.
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What is the format of the income statement for governmental funds?
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What are the main professional standard setting bodies for accounting and financial statements?
If the entity is for profit or a non-for-profit, then the Financial Accounting Standards Board (FASB) determines the rules. If the entity is governmental, then the Government Accounting Standards Board (GASB) determines the rules.
What is the format of the income statement for governmental funds?
The visual below illustrates the proper format of the income statement for a government fund, which is one of the three types of funds under GASB.
What are government financial statements used for and how is it different from for-profit financial statements?
The primary differences related to for profit and governmental financial reporting, are that for-profit financial statements are primarily used to provide investors and creditors with sufficient information to make business decisions. Whereas the primary reporting objectives for governmental organizations will be sustain accountability. Essentially, this indicates that citizens of a government have right to know...
What are the main professional standard setting bodies for accounting and financial statements?
If the entity is for profit or a non-for-profit, then the Financial Accounting Standards Board (FASB) determines the rules. If the entity is governmental, then the Government Accounting Standards Board (GASB) determines the rules.
