P2-48. (Difference between expenditures and expenses) Based on the information shown below, calculate for the year ended December 31, 2021, (a) the total amount of expenditures that would be recognized when using the current financial resources measure- ment focus and modified accrual basis of accounting, and (b) the total amount of expenses that would be recognized using the economic resources measurement focus and accrual basis of accounting. Chapter 2 The Use of Funds in Governmental Accounting Cambridge Business Publishers Salaries paid in cash during 2021 Salaries applicable to 2021, due to be paid January 5, 2022. Utility bill applicable to 2021, due to be paid January 10, 2022. Equipment acquired at the beginning of 2021 and having an estimated useful life of 10 years... Payment of principal on long-term debt on December 31, 2021 Payment of interest on long-term debt on December 31, 2021. $3,000,000 20,000 10,000 200,000 100,000 40,000

P2-48. (Difference between expenditures and expenses) Based on the information shown below, calculate for the year ended December 31, 2021, (a) the total amount of expenditures that would be recognized when using the current financial resources measure- ment focus and modified accrual basis of accounting, and (b) the total amount of expenses that would be recognized using the economic resources measurement focus and accrual basis of accounting. Chapter 2 The Use of Funds in Governmental Accounting Cambridge Business Publishers Salaries paid in cash during 2021 Salaries applicable to 2021, due to be paid January 5, 2022. Utility bill applicable to 2021, due to be paid January 10, 2022. Equipment acquired at the beginning of 2021 and having an estimated useful life of 10 years... Payment of principal on long-term debt on December 31, 2021 Payment of interest on long-term debt on December 31, 2021. $3,000,000 20,000 10,000 200,000 100,000 40,000

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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Governmental funds report current financial resources. However, governmental funds alsoreport some current assets which are not financial resources. Which of the assets below is acurrent financial resource at December 31, 2022? A. Property taxes receivable expected to be collected between March 2 and December 31, 2023. B.Office supplies that will be used in 2023. C.A and B. D.Neither A nor B.
Which Statement is presented using the accrual basis of accounting? Multiple Choice A. Governmental Fund Balance Sheet B. Government-Wide Statement of Activities C. Statement of Revenues, Expenditure and changes in Fund Balances D. Both A and B choices are true.
Which of the following adjustments would likely be made when moving from governmental funds financial statements to government-wide financial statements? a. Record an additional expense for compensated absences b. Record an additional expense related to salaries earned at year-end c. Both of the above d. Neither of the above
Which of the financial statements described below is prepared by the general fund of a state or local government? Group of answer choices a.) A statement of revenues, expenses, and changes in retained earnings. b.) An income statement. c.) A statement of revenues, expenditures, and changes in fund balance.
Governmental funds report current financial resources. However, governmental funds may report some assets which are not current financial resources. Which of the assets below is acurrent financial resource at December 31, 2022? A. An advance to an enterprise fund that is scheduled to be repaid in February, 2024. B. Due from other funds. C.A and B. D.Neither A nor B.
Hh2.
The following events take place: 1. 2. 3. James Smith died and left 100 acres of undeveloped land to the city for a future park. He acquired the land at $100 an acre, but at the date of his death, the land was appraised at $7,200 an acre. The city authorized the transfer of $110,000 of general revenues and the issuance of $1,050,000 in general obligation bonds to construct improvements on the donated land. The bonds were sold at par. The improvements were completed at a cost of $1,160,000, and the operation of the park was turned over to the City Parks Department. Prepare entries in general journal form to record these transactions in the proper fund(s). Designate the fund in which each transaction is recorded. If the transaction did not result in a journal entry to a government fund, record the journal entry needed to reflect the information in the government-wide Statement of Net Position. (Credit account titles are automatically indented when amount is entered. Do not indent…
However, conducting a financial statement analysis does provide a better understanding of the federal government to assist in the financial statement analysis, use Illustration 17-2 and Illustration 17-3 along with the following excerpts from the 2019 Financial Report of the United States Government. (Hint: When using revenues or net costs, use the consolidated amounts, which are adjusted for intra- entity activity) UNITED STATES GOVERNMENT Statements of Changes in Cash Balance from Budget and Other Activities For the Years Ended September 30, 2019, and 2018 (In billions of dollars) Cash flow from budget activities Total budget receipts Total budget out lays Budget deficit Adjustments for non-cash outlays included in the budget Non-cash flow amounts in the budget related to federal debt securities Accrued interest Net amortization Other Subtotal adjustments for non-cash flow amounts in the budget related to federal debt securities Non-cash flow amounts in the budget related to loan…
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4. Governmental fund financial statements are prepared using: a) A current financial resources measurement focus and the modified accrual basis of accounting. b) A current financial resources measurement focus and the accrual basis of accounting. O c) An economic resources measurement focus and the modified accrual basis of accounting. d) An economic resources measurement focus and the accrual basis of accounting.
List some of the major adjustments required when converting from fund financial statements to governmentwide statements. Why are these adjustments necessary?
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