In 2015 and 2016 the City observed a higher than expected rate of car accidents involving Cityowned or leased vehicles. The annual approved budget is $700,000 per year. The cause of the higherrate of the accidents is most likely associated with the extensive street repairs that will continuethroughout 2020. The Vehicle Repair Project budget for 2015 vehicle repairs was exceeded by 10%and the budget for 2016 was exceeded by 20%.If the budget doesn't change, but the actual cost of the Vehicle Repair Project continues to escalate,what will the repair cost be in 2019?$1,820,000$1,050,000$2,522,250$1,120,000

Step 1: Take note of the trend of the increase between 2015 and 2016.At 2015, the budget was…

Answered: In 2015 and 2016 the City observed a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question: The city of San Fernando operates on a calendar year basis. John Perez, the governor, is particularly proud of his reputation for making sure the state lives within its means. He knows that revenues in 2018 are coming in at a slower pace than anticipated, and he fears that expenditures may exceed revenues for the first time in his tenure as governor. He seeks advice from his budget director, who says: “No problem. I’ll just tell the agencies not to send invoices for utilities, travel expenses, and professional services to the comptroller during November and December for payment. Because the state uses the modified accrual basis of accounting, the comptroller won’t charge the bills to 2018.” The elected state comptroller is responsible not only for paying the bills but also for preparing financial statements in accordance with GAAP. What should the comptroller do when he learns about the budget director’s idea?
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Please Do not Give image format and solve all parts Thank You
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