About Me
CPA
1 Regulation (REG)
1.1 Ethics, Professional Responsibilities, and Federal Tax Procedures
1.1 1 Professional ethics and responsibilities
1.1 2 Federal tax procedures and practices
1.1 3 Circular 230
1.2 Business Law
1.2 1 Legal rights, duties, and liabilities of entities
1.2 2 Contracts and sales
1.2 3 Property and bailments
1.2 4 Agency and employment
1.2 5 Business organizations
1.2 6 Bankruptcy
1.2 7 Secured transactions
1.3 Federal Taxation of Property Transactions
1.3 1 Basis determination and adjustments
1.3 2 Gains and losses from property transactions
1.3 3 Like-kind exchanges
1.3 4 Depreciation, amortization, and depletion
1.3 5 Installment sales
1.3 6 Capital gains and losses
1.3 7 Nontaxable exchanges
1.4 Federal Taxation of Individuals
1.4 1 Gross income inclusions and exclusions
1.4 2 Adjustments to income
1.4 3 Itemized deductions and standard deduction
1.4 4 Personal and dependency exemptions
1.4 5 Tax credits
1.4 6 Taxation of individuals with multiple jobs
1.4 7 Taxation of nonresident aliens
1.4 8 Alternative minimum tax
1.5 Federal Taxation of Entities
1.5 1 Taxation of C corporations
1.5 2 Taxation of S corporations
1.5 3 Taxation of partnerships
1.5 4 Taxation of trusts and estates
1.5 5 Taxation of international transactions
2 Financial Accounting and Reporting (FAR)
2.1 Conceptual Framework, Standard-Setting, and Financial Reporting
2.1 1 Financial reporting framework
2.1 2 Financial statement elements
2.1 3 Financial statement presentation
2.1 4 Accounting standards and standard-setting
2.2 Select Financial Statement Accounts
2.2 1 Revenue recognition
2.2 2 Inventory
2.2 3 Property, plant, and equipment
2.2 4 Intangible assets
2.2 5 Liabilities
2.2 6 Equity
2.2 7 Compensation and benefits
2.3 Specific Transactions, Events, and Disclosures
2.3 1 Leases
2.3 2 Income taxes
2.3 3 Pensions and other post-retirement benefits
2.3 4 Derivatives and hedging
2.3 5 Business combinations and consolidations
2.3 6 Foreign currency transactions and translations
2.3 7 Interim financial reporting
2.4 Governmental Accounting and Not-for-Profit Accounting
2.4 1 Governmental accounting principles
2.4 2 Governmental financial statements
2.4 3 Not-for-profit accounting principles
2.4 4 Not-for-profit financial statements
3 Auditing and Attestation (AUD)
3.1 Engagement Planning and Risk Assessment
3.1 1 Engagement acceptance and continuance
3.1 2 Understanding the entity and its environment
3.1 3 Risk assessment procedures
3.1 4 Internal control
3.2 Performing Audit Procedures and Evaluating Evidence
3.2 1 Audit evidence
3.2 2 Audit procedures
3.2 3 Analytical procedures
3.2 4 Substantive tests of transactions
3.2 5 Tests of details of balances
3.3 Reporting on Financial Statements
3.3 1 Audit report content
3.3 2 Types of audit reports
3.3 3 Other information in documents containing audited financial statements
3.4 Other Attestation and Assurance Engagements
3.4 1 Types of attestation engagements
3.4 2 Standards for attestation engagements
3.4 3 Reporting on attestation engagements
4 Business Environment and Concepts (BEC)
4.1 Corporate Governance
4.1 1 Internal controls and risk assessment
4.1 2 Code of conduct and ethics
4.1 3 Corporate governance frameworks
4.2 Economic Concepts
4.2 1 Microeconomics
4.2 2 Macroeconomics
4.2 3 Financial risk management
4.3 Financial Management
4.3 1 Capital budgeting
4.3 2 Cost measurement and allocation
4.3 3 Working capital management
4.3 4 Financial statement analysis
4.4 Information Technology
4.4 1 IT controls and security
4.4 2 Data analytics
4.4 3 Enterprise resource planning (ERP) systems
4.5 Operations Management
4.5 1 Strategic planning
4.5 2 Project management
4.5 3 Quality management
4.5 4 Supply chain management
2 4 1 Governmental Accounting Principles Explained

4 1 Governmental Accounting Principles Explained

Key Concepts

Governmental Accounting Standards Board (GASB)

The Governmental Accounting Standards Board (GASB) is the organization that establishes accounting and financial reporting standards for state and local governments in the United States. These standards ensure transparency and comparability in financial reporting.

Fund Accounting

Fund accounting is a system used by governments to ensure that resources are used for the intended purposes. It involves segregating financial resources into separate funds, each with its own set of accounts and financial statements.

General Fund

The General Fund is the primary operating fund of a government. It accounts for all financial resources not required to be accounted for in another fund. The General Fund is used to finance the government's day-to-day operations.

Example: Property taxes collected by a city are typically recorded in the General Fund to finance public services such as police and fire departments.

Special Revenue Funds

Special Revenue Funds are used to account for revenues that are restricted or committed for specific purposes by law or grant agreements. These funds ensure that designated revenues are used only for their intended purposes.

Example: A state government receives federal grants for education. These funds are recorded in a Special Revenue Fund to ensure they are used exclusively for educational programs.

Capital Projects Funds

Capital Projects Funds are used to account for financial resources used to acquire or construct major capital facilities. These funds ensure that resources are properly managed and accounted for during the construction or acquisition process.

Example: A county government uses a Capital Projects Fund to finance the construction of a new courthouse. The fund tracks all expenditures related to the project.

Proprietary Funds

Proprietary Funds are used to account for operations that are similar to those of private-sector businesses. These funds are used for activities that generate revenues and incur expenses, such as utilities or public transportation services.

Example: A city operates a water utility. The revenues and expenses related to the utility are recorded in a Proprietary Fund to provide a comprehensive view of the utility's financial performance.

Fiduciary Funds

Fiduciary Funds are used to account for assets held by the government in a trustee capacity or as an agent for individuals, private organizations, or other governments. These funds ensure that assets are managed in accordance with the terms of the trust or agency agreement.

Example: A state government manages a pension fund for its employees. The assets and liabilities related to the pension fund are recorded in a Fiduciary Fund to ensure proper management and reporting.

Examples and Analogies

Consider fund accounting as "separate bank accounts" for different purposes. Just as you might have a checking account for daily expenses and a savings account for a specific goal, governments use different funds to manage their financial resources.

Think of the General Fund as the "main bank account" for a government, used for everyday operations. Special Revenue Funds are like "restricted savings accounts" for designated purposes, ensuring that specific funds are used as intended.

Capital Projects Funds are akin to "construction accounts," used to manage and track resources for major projects. Proprietary Funds are like "business accounts," used for operations that generate revenues and incur expenses.

Fiduciary Funds are like "trust accounts," ensuring that assets held in trust or as an agent are managed according to the terms of the agreement.

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