LSU ACCT 4421 Brigs
Where is Salary expense NOT recorded? - Answer- Governmental Funds
Expenses are recongized when an asset is ______ - Answer- Consumed
expenditures are recognized when an asset is _____ - Answer- acquired
These are characteristics of What?
• Recorded in the Government-wide / Proprietary/ Fiduciary
• Full Accrual
• Result from decreases in net economic resources
• Generally recognized when an asset is consumed (used up)
o Note: In a business, a liability is current if it will be paid within 1 year or the operating cycle,
whichever is longer. - Answer- Expenses
These are characteristics of what?
• Recorded in Governmental funds
• Modified Accrual
• Result from decreases in net current (expendable / available) financial resources (CA-CL)
• Generally recognized when an asset is acquired
o Note: With a government, a liability is current if it will be paid/liquidated from current (expendable
available) financial resources. - Answer- Expenditures
When should governments accrue (give accounting recognition to) a liability? - Answer- 1) When it
is incurred (becomes obligated for), or
2) GASB allowed exception - which allows the delay of recognizing liability/expenditure until the
period the liability is paid (thus at the point the expendable / available financial resources are
reduced).
GASB says to recognize all expenses at the same time in Government Wide and Governmental
Fund, Except for these 7 instances: I - Answer- 1. Compensated absence
2. Pension and other post-employment benefits
3. Claims and judgments
4. inventories
5. prepayments
6. capital assets
7. principal and interest
would report liability and expense in the government-wide statements/proprietary/fiduciary when
net economic resources are decreased is under what type of accrual? - Answer- Full Accrual
One of the Seven:
- Examples: Vacations, Holidays, Sick Leave, Sabbatical Leave, or Jury Duty
- "earn them in one salary but are paid them in another salary"
- the liabilities and expenditures are recognized in the periods in which payment is made. -
Answer- Compensated Absences
, GASB states that compensated absence liabilities are normally liquidated with expendable
available resources in the periods in which the payments to employees are made. Therefore, the
liabilities and expenditures are recognized in the periods in which ____________. Until that time,
they are recorded in the________ & _______ - Answer- GASB states that compensated absence
liabilities are normally liquidated with expendable available resources in the periods in which the
payments to employees are made. Therefore, the liabilities and expenditures are recognized in the
periods in which payment is made. Until that time, they are recorded in the government-wide
statements and also on a Schedule of Long Term obligations.
type of compensated absence:
Different from vacation leave - Beyond the control of both the employee and the employer -
Answer- Sick Leave
GASB states that sick leave is recognized as a liability only if it is probable that the employer will
compensate the employees for the benefits through _________ conditioned on the employees'
_________ or _____ (paid out to employees who are not sick with available financial resources).
Rational - the remainder is based on the employee getting sick - which is unknown. - Answer- •
GASB states that sick leave is recognized as a liability only if it is probable that the employer will
compensate the employees for the benefits through cash payments conditioned on the employees'
termination or retirement (paid out to employees who are not sick with available financial
resources). Rational - the remainder is based on the employee getting sick - which is unknown.
GASB standards state it depends on purpose of the Sabbatical Leave:
1) If leave will benefit employer (obtain additional training), the sabbatical should be accounted for
in the period the leave is _____
2) If leave is for "compensated unrestricted time off" then the government should accrue a liability
during the period the leave is ______ - Answer- GASB standards state it depends on purpose of
the Sabbatical Leave:
1) If leave will benefit employer (obtain additional training), the sabbatical should be accounted for
in the period the leave is taken. No liability accrued in advance of the leave.
2) If leave is for "compensated unrestricted time off" then the government should accrue a liability
during the period the leave is earned (i.e., over 7 years leading up to the leave).
One of the Seven
Amount of money paid to retired or disabled employees. Funded throughout the employee's
working life.
GASB standards state the expenditure should be the amount that will be paid with expendable /
available financial resources. - Answer- Pension
Two types of pensions - Answer- Defined Benefit and Defined Contribution
One of the seven:
Common examples include:
• Injuries to employees (workers' comp)
• Negligence of government employees (medical malpractice in gov hospitals, wrongful arrests)
• Contractual disputes with suppliers
• Employment practices (civil rights, wrongful discharge, sexual harassment) - Answer- Claims and
Judgment
For claims and judgements
Where is Salary expense NOT recorded? - Answer- Governmental Funds
Expenses are recongized when an asset is ______ - Answer- Consumed
expenditures are recognized when an asset is _____ - Answer- acquired
These are characteristics of What?
• Recorded in the Government-wide / Proprietary/ Fiduciary
• Full Accrual
• Result from decreases in net economic resources
• Generally recognized when an asset is consumed (used up)
o Note: In a business, a liability is current if it will be paid within 1 year or the operating cycle,
whichever is longer. - Answer- Expenses
These are characteristics of what?
• Recorded in Governmental funds
• Modified Accrual
• Result from decreases in net current (expendable / available) financial resources (CA-CL)
• Generally recognized when an asset is acquired
o Note: With a government, a liability is current if it will be paid/liquidated from current (expendable
available) financial resources. - Answer- Expenditures
When should governments accrue (give accounting recognition to) a liability? - Answer- 1) When it
is incurred (becomes obligated for), or
2) GASB allowed exception - which allows the delay of recognizing liability/expenditure until the
period the liability is paid (thus at the point the expendable / available financial resources are
reduced).
GASB says to recognize all expenses at the same time in Government Wide and Governmental
Fund, Except for these 7 instances: I - Answer- 1. Compensated absence
2. Pension and other post-employment benefits
3. Claims and judgments
4. inventories
5. prepayments
6. capital assets
7. principal and interest
would report liability and expense in the government-wide statements/proprietary/fiduciary when
net economic resources are decreased is under what type of accrual? - Answer- Full Accrual
One of the Seven:
- Examples: Vacations, Holidays, Sick Leave, Sabbatical Leave, or Jury Duty
- "earn them in one salary but are paid them in another salary"
- the liabilities and expenditures are recognized in the periods in which payment is made. -
Answer- Compensated Absences
, GASB states that compensated absence liabilities are normally liquidated with expendable
available resources in the periods in which the payments to employees are made. Therefore, the
liabilities and expenditures are recognized in the periods in which ____________. Until that time,
they are recorded in the________ & _______ - Answer- GASB states that compensated absence
liabilities are normally liquidated with expendable available resources in the periods in which the
payments to employees are made. Therefore, the liabilities and expenditures are recognized in the
periods in which payment is made. Until that time, they are recorded in the government-wide
statements and also on a Schedule of Long Term obligations.
type of compensated absence:
Different from vacation leave - Beyond the control of both the employee and the employer -
Answer- Sick Leave
GASB states that sick leave is recognized as a liability only if it is probable that the employer will
compensate the employees for the benefits through _________ conditioned on the employees'
_________ or _____ (paid out to employees who are not sick with available financial resources).
Rational - the remainder is based on the employee getting sick - which is unknown. - Answer- •
GASB states that sick leave is recognized as a liability only if it is probable that the employer will
compensate the employees for the benefits through cash payments conditioned on the employees'
termination or retirement (paid out to employees who are not sick with available financial
resources). Rational - the remainder is based on the employee getting sick - which is unknown.
GASB standards state it depends on purpose of the Sabbatical Leave:
1) If leave will benefit employer (obtain additional training), the sabbatical should be accounted for
in the period the leave is _____
2) If leave is for "compensated unrestricted time off" then the government should accrue a liability
during the period the leave is ______ - Answer- GASB standards state it depends on purpose of
the Sabbatical Leave:
1) If leave will benefit employer (obtain additional training), the sabbatical should be accounted for
in the period the leave is taken. No liability accrued in advance of the leave.
2) If leave is for "compensated unrestricted time off" then the government should accrue a liability
during the period the leave is earned (i.e., over 7 years leading up to the leave).
One of the Seven
Amount of money paid to retired or disabled employees. Funded throughout the employee's
working life.
GASB standards state the expenditure should be the amount that will be paid with expendable /
available financial resources. - Answer- Pension
Two types of pensions - Answer- Defined Benefit and Defined Contribution
One of the seven:
Common examples include:
• Injuries to employees (workers' comp)
• Negligence of government employees (medical malpractice in gov hospitals, wrongful arrests)
• Contractual disputes with suppliers
• Employment practices (civil rights, wrongful discharge, sexual harassment) - Answer- Claims and
Judgment
For claims and judgements
