Funds: Government units and entities provide various services such as police protection, water and sewerage legal courts, constructions, etc. Government units require various resources for these services and it receives these resources from various sources and government must make expenditures in accordance with legal restrictions. To accomplish the governmental objectives, the unit establishes a variety of funds as that unit’s fiscal and accounting entities.
To explain:A fund and the manner a fund receives resources.
Answer to Problem 17.1Q
A fund is an independent fiscal and accounting entity with self-balancing set of accounts. A fund may receive resources from variety of sources, including taxes, commercial sales, grants, fines and service charges collected.
Explanation of Solution
The above answer can be explained as, every governmental entity establishes various funds to achieve its objectives. These funds are separate accounting groups with accounts to record the transactions and prepare financial statements, each fund records those transactions affecting its assets, related liabilities and residual fund balance.
Different funds are established for the specific functions that a government must provide. Most funds obtain resources form taxes on property, income from commercial sales, grants provided by governmental agencies, fines collected, charges on services, and each fund must make expenditures in accordance with its specified purposes.
Want to see more full solutions like this?
Chapter 17 Solutions
ADVANCED FIN. ACCT.(LL)-W/CONNECT
- On December 31, Year 8, Suzi McDowell wants to have $60,000. She plans to make 6 deposits in a fund to provide this amount. Interest compounds annually at 12%. Required: Compute the equal annual amounts that Suzi must deposit assuming that he makes the first deposit on: December 31, Year 3 December 31, Year 2arrow_forwardHello tutor please help me this questionarrow_forwardcorrect answer pleasearrow_forward
- hi expert please help mearrow_forwardE14.10 (LO 1) (Information Related to Various Bond Issues) Pawnee Inc. has issued three types of debt on January 1, 2022, the start of the company's fiscal year. a. $10 million, 10-year, 13% unsecured bonds, interest payable quarterly. Bonds were priced to yield 12%. b. $25 million par of 10-year, zero-coupon bonds at a price to yield 12% per year. c. $15 million, 10-year, 10% mortgage bonds, interest payable annually to yield 12%. Instructions Prepare a schedule that identifies the following items for each bond: (1) maturity value, (2) number of interest periods over life of bond, (3) stated rate per each interest period, (4) effective-interest rate per each interest period, (5) payment amount per period, and (6) present value of bonds at date of issue. Hint: you don't need to prepare the amortization schedule to answer this question. Just a simple table is enough.arrow_forwardNeed correct answer of this question general Accountingarrow_forward
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning