Outstanding obligations at the end of fiscal period : depends on the governmental unit’s policy. The government may allow outstanding liabilities to lapse; that is the unit will not honor these obligations in current year but it will carried over to the New Year, the New Year budget must rebuild them. A second method is to carry over the obligations as non-lapsing spending authority. This method recognizes the practical aspects of encumbrances outstanding at the end of fiscal period. To explain: the main difference between lapsing and non-lapsing methods of accounting for encumbrances at the end of the fiscal year, and actual expenditure in subsequent year.

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 17, Problem 17.10Q

To determine

Outstanding obligations at the end of fiscal period: depends on the governmental unit’s policy. The government may allow outstanding liabilities to lapse; that is the unit will not honor these obligations in current year but it will carried over to the New Year, the New Year budget must rebuild them. A second method is to carry over the obligations as non-lapsing spending authority. This method recognizes the practical aspects of encumbrances outstanding at the end of fiscal period.

To explain: the main difference between lapsing and non-lapsing methods of accounting for encumbrances at the end of the fiscal year, and actual expenditure in subsequent year.

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Which one of the following statement about encumbrance is correct? a. Encumbrances are equivalent to expenditures and encumbrances outstanding at the end of a year should be reported as assets b. None of the options c. Encumbrances are equivalent to expenditures and encumbrances outstanding at the end of a year should be reported as liabilities d. Encumbrances are recorded at the estimated cost of goods ordered or services contracted for. The subsequent amount recognized as expenditures upon receipt of the goods and services may differ from the encumbered amount.

Choose the correct. How should material seasonal variations in revenue be reflected in interim financial statements?a. The seasonal nature should be disclosed, and the interim report should be supplemented with a report on the 12-month period ended at the interim date for both the current and preceding years.b. The seasonal nature should be disclosed, but no attempt should be made to reflect the effect of past seasonality on financial statements.c. The seasonal nature should be reflected by providing pro forma financial statements for the current interim period.d. No attempt should be made to reflect seasonality in interim financial statements.

Please answer it if is TRUE or FALSE.

Answer 2

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 17, Problem 17.10Q

To determine

Outstanding obligations at the end of fiscal period: depends on the governmental unit’s policy. The government may allow outstanding liabilities to lapse; that is the unit will not honor these obligations in current year but it will carried over to the New Year, the New Year budget must rebuild them. A second method is to carry over the obligations as non-lapsing spending authority. This method recognizes the practical aspects of encumbrances outstanding at the end of fiscal period.

To explain: the main difference between lapsing and non-lapsing methods of accounting for encumbrances at the end of the fiscal year, and actual expenditure in subsequent year.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 17, Problem 17.10Q

To determine

Outstanding obligations at the end of fiscal period: depends on the governmental unit’s policy. The government may allow outstanding liabilities to lapse; that is the unit will not honor these obligations in current year but it will carried over to the New Year, the New Year budget must rebuild them. A second method is to carry over the obligations as non-lapsing spending authority. This method recognizes the practical aspects of encumbrances outstanding at the end of fiscal period.

To explain: the main difference between lapsing and non-lapsing methods of accounting for encumbrances at the end of the fiscal year, and actual expenditure in subsequent year.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 17, Problem 17.10Q

To determine