ACCTG 462 Lecture Notes - Lecture 3: Deferred Income, Accounts Payable, Capital Asset
Document Summary
Current borrowings are recorded n the same manner as commercial businesses. Most of these statements are eliminated in the government-wide statements. Typically, sales of services (revenue / expense / expenditure of affected funds. One fund pays for a good / service for another fund. When the reimbursement is made, the expense / expenditure is recorded in the correct fund and the initial revenue / expenditure is reversed. Assignment of resources form one fund to another where there is no expectation that the amounts will be repaid. Significant transactions that are either unusual or infrequent but within the control of management. Proceeds of capital assets are designated as special items. The closing process: close budgetary accounts, close revenues, expenditures, etc, the budgetary accounts (ex. Estimated revenue) are closed to budgetary fund balance: encumbrances closed at year-end and reopened at next beginning of the year, activity accounts are closed to fund balance, 114 (4-3)
