Get a Custom Essay Paper that meets your expectations by clicking ORDER
Government Accounting
Order Instructions:
Overview
Complete two exercises in government accounting.
Governmental accounting has come under close scrutiny lately. Taxpayers are more concerned than ever about how their tax dollars are being spent by different government entities.
By successfully completing this assessment, you will demonstrate your proficiency in the following course
Competencies and assessment criteria:
Competency 4:
- Analyze accounting issues related to government.
- Record basic journal entries for fund financial statements.
- Record basic journal entries for government-wide financial statements.
- Differentiate between encumbrances and expenditures.
- Differentiate between government activities and business-type activities.
- Determine the consequences of certain transactions for state and local governments.
Context
Just as for-profit businesses must prepare financial statements for their stakeholders, state and local government entities must also assemble their financial data and report the results to their constituents. But because the readers of government financial statements have a wide variety of information needs, no single set of statements seems capable of satisfying all of the users. Accountability of government officials and control over public spending have always been essential elements of government accounting. The Governmental Accounting Standards Board (GASB) is charged with setting authoritative accounting standards for state and local government units.
In addition to the issues you examined in the previous assessment, there remains a number of other asset issues to deal with when governmental accounting procedures are involved. The first such issue involves obtaining assets through lease arrangements. Government accounting applies the same criteria for identifying a capital lease as a for-profit organization.
Some other issues include the following:
- Solid waste landfills creating large potential debts for a government because of closure and postclosure costs.
- Future compensated employee absences because of holidays, sick leave, and vacations.
- A state or local government obtaining a work of art or historical treasure.
Questions to Consider
To deepen your understanding, you are encouraged to consider the questions below concerning the principles and practices that underlie state and local government accounting, and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.
- Who uses the financial data produced by state and local government units?
- How does fund accounting differ from financial accounting?
- When does a government recognize revenues, expenses, and expenditures?
- Why are two sets of financial statements necessary
For the following question, refer to the city of Sacramento’s Comprehensive Annual Financial Reports, linked in the Suggested Resources under the Internet Resources heading.
How does the audit opinion given to this city by its independent auditors differ from the audit opinion that might be rendered on the financial statements for a for-profit business?
Resources
Required Resources
The following resources are required to complete the assessment.
Government Accounting Excel Workbook.
Internet Resources
Access the following resources by clicking the links provided. Please note that URLs change frequently. Permissions for the following links have been either granted or deemed appropriate for educational use at the time of course publication.
City of Sacramento. (n.d.). Financial reporting. Retrieved from http://portal.cityofsacramento.org/Finance/Accounting/Reporting
National Center for Education Statistics. (2003). Financial accounting for local and state school systems: Chapter 4: Governmental accounting. Retrieved from https://nces.ed.gov/pubs2004/h2r2/ch_4.asp
Hoyle, J. B., Schaefer, T., & Doupnik, T. (2014). Fundamentals of advanced accounting (6th ed.). New York, NY: McGraw-Hill Education.
Chapter 11, “Accounting for State and Local Governments, Part I.”
Chapter 12, “Accounting for State and Local Governments, Part II.”
Assessment Instructions
Complete Exercises 1 and 2 in the Government Accounting Excel Workbook, linked in the Required Resources for this assessment. All financial information and applicable instructions are provided on each exercise worksheet.
Exercise 1: Fund-Based and Government-Wide Journal Entries
Record basic journal entries for fund-based and government-wide financial statements.
Exercise 2: City Operations Transactions
Differentiate between encumbrances and expenditures.Differentiate between government activities and business-type activities.
Determine the consequences of certain transactions for state and local governments.
Get a Custom Essay Paper that meets your expectations by clicking ORDER
