Table of Contents

Course Learning Objectives. 5

Chapter 1 - Governmental Accounting: An Overview - Section 1. 8

Learning Objectives. 8

Characteristics of Nonbusiness Entities. 8

Differences between Governmental and Private Sector Accounting. 9

Background of Governmental Accounting. 10

Major Concepts of Governmental Accounting. 12

Chapter 1 - Section 1 Review Questions. 18

Chapter 1 - Governmental Accounting: An Overview - Section 2. 19

Financial Reporting of Governmental Entities. 19

Chapter 1 - Section 2 Review Questions. 30

Chapter 1 - Governmental Accounting: An Overview - Section 3. 32

Budgetary Aspects of Governmental Operations. 32

Accounting for Expenditures. 34

Accounting for Fixed Assets. 44

Long-Term Debt and Capital Leases. 45

Lease Accounting. 46

Investments. 48

Interfund Activities. 49

Overview of Accounting and Financial Reporting for the General Fund. 52

Comprehensive Illustration of Accounting for the General Fund. 54

Chapter Summary. 66

Chapter 1 - Section 3 Review Questions. 68

Chapter 2 - Special Funds and Financial Reporting - Section 4. 70

Learning Objectives. 70

Governmental Funds Worksheets. 73

Special Revenue Funds. 73

Capital Projects Funds. 77

Debt Service Funds. 82

Chapter 2 - Section 4 Review Questions. 88

Chapter 2 - Special Funds and Financial Reporting - Section 5. 89

Permanent Funds. 89

Governmental Funds Financial Statements. 90

Proprietary Funds. 94

Enterprise Funds. 94

Chapter 2 - Section 5 Review Questions. 101

Chapter 2 - Special Funds and Financial Reporting - Section 6. 102

Internal Service Funds. 102

Fiduciary Funds. 109

Trust Funds. 113

Agency Funds. 117

The Government Reporting Model 119

Additional Considerations. 134

Chapter Summary. 142

Chapter 2 - Section 6 Review Questions. 144

Review Question Answers. 146

Appendix: Four Major Issues of the Government Reporting Model 167

Glossary. 170

Index. 189

CPE Exam Answer Sheet 190

Final Examination. 192

CPASelfstudy.com Course Evaluation. 199