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Fund Accounting and Recognizing Revenue

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What are the basic principles of fund accounting?
When do governmental entities recognize revenue?
Why is timing important in recognizing revenue?

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Solution Summary

The expert determines what are the basic principles of fund accounting. The governmental entities recognize revenues are determined.

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The basic principles of fund accounting according to the Governmental GAAP requirements are that governmental units are accounted for through separate funds which are considered fiscal and accounting entity with a self- balancing set of accounts (www.ofm.wa.gov). The funds are grouped in accordance with it financial resources and the activities financed. There are three categories or groups of funds used in governmental accounting and they are governmental funds, proprietary funds and fiduciary funds. Fund accounting requires interim reporting and a comprehensive annual financial report. The ...

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