Accounting for Governmental and NonProfit Entities

accrual basis - the basis of accounting under which revenues are recorded when earned and expenditures (or expenses) are recorded as soon as they result in liabilities for benefits received, notwithstanding that the receipt of cash or payment of cash may take place, in whole or in part, in another accounting period. agency funds - funds consisting of resources received and held by the gov't as an agent for others; for example, taxes collected and held by a municipality for a school district. Business-type activities - commercial-type activities of a gov't, such as public utilities (e.g. electric, water, gas, and sewer utilities), transportation systems, toll roads, toll bridges, hospitals, parking garages and lots, liquor stores, golf courses, and swimming pools. capital projects fund - Funds used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. current financial resources - Cash or items such as receivables that will be converted into cash during the current fiscal period or that will be available soon enough after the end of the period to pay current-period liabilities. debt service fund - funds used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest. economic resources measurement focus - attention on measuring the total economic resources that flow in and out of the gov't rather than on measuring current financial resources only. enterprise funds - a fund established to finance and account for the acquisition, operation, and maintenance of gov't facilities and services that are entirely or predominantly self-supporting by user charges; or for when the governing body of the gov't has decided periodic determination of revenues earned, expenses incurred, and/or net income is appropriate.