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Accounting for Governmental Operating Activities ...

1 Chapter 4 Chapter 4 Accounting for Governmental Accounting for Governmental Operating ActivitiesOperating Activities --------Illustrative Transactions &Illustrative Transactions &Financial StatementsFinancial Statements2 Govt lGovt lFunds ReviewFunds Review!!Spending FocusSpending Focus!!Current Financial ResourcesCurrent Financial Resources!!Modified AccrualModified Accrual!!Revenues & ExpendituresRevenues & Expenditures!!No Fixed AssetsNo Fixed Assets!!No Long Term (LT) DebtNo Long Term (LT) Debt3 Budgetary AccountingBudgetary Accounting !! journal Entries: journal Entries:Estimated RevenuesEstimated RevenuesEst. Other Financing SourceEst. Other Financing SourceAppropriationsAppropriationsEst. Other Financing UseEst. Other Financing UseFund BalanceFund Balance4 Revisions to BudgetRevisions to Budget!!Evaluate Inflows & OutflowsEvaluate Inflows & Outflows!!Adjust Budget through Adjust Budget through journal EntryJournal Entry5 Encumbrance Accounting Encumbrance Accounting !

Journal Entries: Estimated Revenues Est. Other Financing Source Appropriations Est. Other Financing Use Fund Balance. 4 Revisions to Budget! Evaluate Inflows & Outflows! Adjust Budget through Journal Entry. 5 Encumbrance Accounting ! Additional Appropriation Control! Issuance of Purchase Order

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