Superficial Drill Down on Governmental Accounting Sheet one

Superficial Drill Down on Governmental Accounting Sheet One: 

• For governmental fund types, primary measurement focus includes flows and balances of financial resources.
• Given that accounting is done on the accrual basis, recognition will most likely recognize the liability when the underlying transaction takes place. 
• If an item is "inexhaustible" (like artwork), governments may capitalize, but is not required (and neither is depreciation). 
• Interest on debt - reported from the interest from the notes payable benefiting the specific function as a direct expense, and then the remaining interest as a separate line item via indirect expense. 
• Of the upmost importance and objective of financial reporting by state and local governments is accountability. 
• Services from one governmental unit to another governmental unit is recognized as operating revenues. 
• Funds that use the economic resources measurement focus and accrual basis is both Fiduciary and Proprietary funds. 
• Collections o expected to be collectible during the first 60 days of the following year can be recorded as revenues of the current year (if to be used to pay current liabilities of the current year). 
• A component unit should be included in the reporting entity or primary government's financial statements using the blending method if the same as the primary government. 
• Enterprise funds - used to report activities for which a fee is charged and to cover a material need (covered by the fees). 
• Fund balance-committed will include initial outstanding encumbrances. After completing all encumbrance steps, any outstanding fund balances will be Fund balance-assigned, which will be the difference of the outstanding fund balance minus the fund balance-committed. 
• Special-purpose unit of government is considered a primary government if: separately elected governing body, legally separate, and fiscally independent of other state/local governments. ​
• Debit expenditures control, under modified accrual and encumbrance accounting, the transaction of the receipt of supplies from approved POs and related invoice.