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Govt. Accounting


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#1 TexasCPA2014

TexasCPA2014

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Posted 02 April 2014 - 02:52 AM

On January 1, Fonk City approved the following general fund resources for the new fiscal period:

Property taxes

5,000,000

Licenses and permits

400,000

Intergovernmental revenues

150,000

Transfers in from other funds

350,000

What amount should Fonk record as estimated revenues for the new fiscal year?

a.

$5,550,000

b.

$5,750,000

c.

$5,400,000

d.

$5,900,000

 

Choice "a" is correct. Revenues include property taxes, licenses and intergovernmental revenues. Transfers would be considered estimated other financing sources. Estimated revenues are:

 

 

For the budgetary year ending December 31, Year 1, Maple City's general fund expects the following inflows of resources:

   
 
Property taxes, licenses, and fines 9,000,000
 
Proceeds of debt issue 5,000,000
 
Interfund transfers for debt service 1,000,000

In the budgetary entry, what amount should Maple record for estimated revenues?

a.

$9,000,000

b.

$14,000,000

c.

$15,000,000

d.

$10,000,000

 
Explanation

Choice "a" is correct. Only the $9,000,000 property taxes, licenses and fines are classified as Estimated Revenues. The $5,000,000 proceeds of debt issue and the $1,000,000 interfund transfer would be classified as Estimated Other Financing Sources in the budgetary entry.

 

 

 

On the first question, I assumed intergovernmental transactions were synonymous to "inter fund" transfer which the second problem indicates is a Estimated Other Financing Source.

 

 

Are they not the same?


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#2 bella.dreamer

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Posted 15 April 2014 - 07:10 PM

They are not the same. I studied this chapter lightly but I still need to review. From what I remember, inter fund transfer is like a loan, while intergovernmental revenue i when one govt unit collects funds on behalf of another government unit. Something like that. Hope this helps.