I think the important things to know for gov't are: the diff between govt funds (general fund, special revenue, debt service, and capital proj) and business type funds (water operating, or some other fund designed to make money like a regular business) and how those flow to the g-wide financials. The g-wides are essentially consolidated f/s and they add up all the govt funds, add up all the b-type funds, extra column for component units if presented discretely. The g-wides are kept on economic resource method, meaning they have long term stuff like debt and capital assets, while the fund financials (general fund, etc) have only short term stuff like A/R, cash, and A/P.
So from start to finish: you budget for the fund financials before the year starts, make purchases against the budget via encumbrances, once the year closes present them in budgetary statements (actual vs budgeted) these are all short term stuff only (capital assets are expenses not capitalized). You group all the funds to make one gov't column on the g-wides, do the same for b-type. In the process of grouping the funds for presentation on the g-wide, you reconcile the long term stuff via journal entries in accordance with GASB 34.
Also, some vocab related stuff: For govt funds, instead of what youd normally call ‘net income' you have ‘change in fund balance. Once you get to the g-wides, instead of Net Assets or equity you have Net Position. Thus the balance sheet isnt called a balance sheet it's called a ‘Statement of Net Position.' Similarly the income statement is called “Statement of revenues, expenditures, and changes in net position.” I dont know if they test this but GASB 63 (or maybe 65) introduced deferred inflows and outflows. Basically another two sections on the “balance sheet” for items GASB deems not quite a liability and not quite an asset. Basically they are sort of like unearned stuff.
BEC: 77
AUD: 67, 85, 87
FAR: 74, 74, 79
REG: ___
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