What is included in government wide financial statements?

What is included in government wide financial statements?

A government-wide financial statement is a detailed summary of all the major government funds, what they have spent, and how much money they have left. This statement shows in detail each aspect the government has spent money on and how much money is left, if any.

What is accrual basis of government accounting?

Under accrual accounting, governments recognize all assets and liabilities including financial assets (such as equities), non-financial assets (such as land and buildings), and liabilities other than debt securities and bonds (such as payment arrears and pension obligations).

Which of the following is true regarding the government wide statement of net position?

Which of the following is true regarding the government-wide Statement of Net Position? The government-wide Statement of Net Position reflects capital assets, net of accumulated depreciation, for both governmental and business-type activities.

What basis of accounting is used to prepare government wide financial statements?

the accrual basis of accounting
The government-wide financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting, as are the Enterprise Funds, Component Units and the Fiduciary Funds financial statements.

Why is net position important?

Statement of Net Position. The statement of net position presents the financial position of the governmental entity and its discretely presented component units. This statement is required to present all financial and capital resources using an economic resources measurement focus and the accrual basis of accounting.

What is Net Position statement?

The Statement of Net Position presents financial information on all of the county’s capital and current assets, minus the current liabilities and long-term debt. The resulting amount is stated as “net position.”

How does accrual accounting affect financial statements?

Accruals are needed for any revenue earned or expense incurred, for which cash has not yet been exchanged. Accruals improve the quality of information on financial statements by adding useful information about short-term credit extended to customers and upcoming liabilities owed to lenders.

Which funds are eliminated when preparing government-wide financial statements?

When converting from governmental fund financial statements to the governmental activities column of the government-wide statements, the proceeds from the sale of capital assets which were listed as an “other financing source” are eliminated and the gain or loss is recorded when preparing the government-wide statements …

What statements are required in the government-wide financial statements in addition to a statement of net position?

A. Statements include the Statement of Net Position, Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows.

What is net position in governmental accounting?

Net position in the balance sheet (or statement of net position) of a local and state government is the difference between total assets plus deferred outflows of resources, and total liabilities plus deferred inflows of resources. It is similar to equity is the balance sheet of a business entity.

How is net position calculated?

The difference between an entity’s assets plus deferred outflows of resources and its liabilities plus deferred inflows of resources represents its net position.