Which of the following asset is not under PAS 41 Select the correct response: Harvested cotton Sugarcane Sugar Cotton plants Statement 1 - Government grants are recognized in profit or loss on a systematic basis over the periods in which the entity recognizes as expenses the related costs for which the grants are intended to compensate. Statement 2- Accounting for government grant uses a 'matching' concept such that, if the related expense is not yet recognized, income from government grant is also not yet recognized. Select the correct response: Only Statement 1 is correct Only Statement 2 is correct Both statements are correct Both statements are incorrect

Which of the following asset is not under PAS 41 Select the correct response: Harvested cotton Sugarcane Sugar Cotton plants Statement 1 - Government grants are recognized in profit or loss on a systematic basis over the periods in which the entity recognizes as expenses the related costs for which the grants are intended to compensate. Statement 2- Accounting for government grant uses a 'matching' concept such that, if the related expense is not yet recognized, income from government grant is also not yet recognized. Select the correct response: Only Statement 1 is correct Only Statement 2 is correct Both statements are correct Both statements are incorrect

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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1. An account for expenditures does not appear in which fund? (a) Capital Projects. (b) Enterprise. (c) General. (d) Special Revenue. 2. Which of the following receipts is properly recorded as unrestricted current funds on the books of a university? (a) Tuition. (b) Student laboratory fees. (c) Housing fees. (d) Research grants. 3. The current funds group of a NFP private university includes which of the following? Annuity Funds Loan Funds (a) Yes Yes (b) Yes No (c) No No (d) No Yes
Government grant related to non-depreciable assets that requires fulfillment of certain conditions* Should not be recognized as income Should be recognized as income immediately Should be recognized as income over 40 years Should be recognized as income over the periods which bear the cost of meeting the conditions
During the current year, a government buys land for $80,000. Which of the following is not true? Choose the correct.a. The land could be reported as an asset by the business-type activities in the government-wide financial statements.b. The land could be reported as an asset by the governmental activities in the government-wide financial statements.c. The land could be reported as an asset by the proprietary funds in the fund financial statements.d. The land could be reported as an asset by the governmental funds in the fund financial statements.
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How is depreciation handled in the federal government’s General Fund? How does it differ from how depreciation is handled in the General Fund of a state or local government?
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Required information [The following information applies to the questions displayed below.] Evergreen County acts as the disbursing agent for a state grant for the performing arts. The state is responsible for determining which local governments are eligible for the grant money and for following up to ensure that the recipients comply with the requirements of the grant. The county receives the grant funds and disburses them according to the schedule provided by the state. When the county was asked to participate, the county's attorney was concerned that the county might be held responsible for any disallowed costs. The state agreed to accept responsibility for any disallowed costs, so the county decided to act as the custodian for the state for this grant. The schedule for the grant funds to be awarded in the current fiscal year is shown below: City of Boulder Aspen Township Snowton Firtree Village Total $2,250,000 1,550,000 1,050,000 750,000 $5,600,000
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Which of the following is not dealt with by PAS 41? [A] the accounting for biological assets [B] the subsequentmeasurement of agricultural produce harvested from biological assets [C] the accounting treatment of government grant received in respect of biological assets [D] all of the choices are dealt with by PAS 41.
How does the topic of accounting for government grants relate to the topic of accounting for biological assets?
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