Superficial Drill Down on Governmental Accounting Sheet Five

Superficial Drill Down on Governmental Accounting Sheet Five: 
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• General fund records expenditures rather than expenses -  entry to record the salaries and wages must, therefore, be made to expenditures control. 
• All taxes of the reporting government, even if restricted to a specific program, are general revenues.
• Entities having status as bodies corporate and politic and entities with the power to enact and enforce a tax levy are each considered governmental organizations
• Letter transmittal and the statistical 
• The portion of fund balance that reflects equity for amounts that cannot be spent because they are not in spendable form would be termed “non-spendable.”
• Debit encumbrances control - record the transaction of approved purchase orders issued for supplies
• Credit reserve for encumbrances - credit when it issues a purchase order for supplies.
• Equipment with a useful life of more than a year, correct treatment includes capitalizing (depreciation is required). 
• The internal service fund, a proprietary fund, records depreciation.
• A comprehensive annual financial report (CAFR) includes an introductory section, financial section, and statistical section.
• If a government’s "Other Post-employment Benefit" plan is administered through a trust that meets specified criteria in GASB Statement 75, the net OPEB liability will be reported. If not the total OPEB liability will be used. 
• Neither general funds nor fiduciary funds have the income determination orientation. 
• A component unit should be included in the reporting entity or primary government's financial statements using the blending method if
  • Component unit's governing body is the same as the primary government; 
  • Component unit provides services entirely or almost entirely to the primary government;
  • Component unit's debt is expected to be repaid with resources provided by the primary government

​cc: Reporting