
Accounting for Governmental & Nonprofit Entities
17th Edition
ISBN: 9780078025822
Author: Jacqueline L. Reck James E. Rooks Distinguished Professor, Suzanne Lowensohn, Earl R Wilson
Publisher: McGraw-Hill Education
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Question
Chapter 3, Problem 1Q
To determine
State the different purpose of the fund -based and government –wide financial statements of a state or local government and also provide the difference between the fund based and government-wide operating statements.
Expert Solution & Answer

Explanation of Solution
Distinguish between the fund based and government-wide operating statements:
Basis | Fund based operating statements | Government-wide operating statements |
Meaning | The fund-based financial statement provides detailed financial information on the governmental, business-type and fiduciary activities of the primary government. | This statement provides an aggregated overview of the government net position and their changes in the net position. This statement reports on the government as a whole and assess whether the government has used the resources efficiently and effectively (operational accountability) to meet the operating objectives. |
Purpose | It helps the users of the information to assess the current period fiscal accountability and helps to ascertain whether the revenue is obtained for authorized sources or extended for authorized purpose. | This statement focuses on the economic resources recognized on the accrual accounting which are similar to the basis of accounting used in the business entity reporting. |
Reporting | The inflow and outflow of the current financial resources and changes in the fund balance during the fiscal period are reported in the statement of revenue, expenditure and changes in the fund balances. | The net programs outflow and inflow of fund or economic resources and inflow from the non-program revenues are reported in the government-wide operation statement. |
(Table 1)
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Chapter 3 Solutions
Accounting for Governmental & Nonprofit Entities
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Prob. 3QCh. 3 - Prob. 4QCh. 3 - Explain the essential differences between revenues...Ch. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - The city manager of University City is finalizing...Ch. 3 - Prob. 15CCh. 3 - Prob. 17.1EPCh. 3 - Prob. 17.2EPCh. 3 - GASB standards require that fund balances of...Ch. 3 - Prob. 17.4EPCh. 3 - Prob. 17.5EPCh. 3 - An internal allocation of funds on a periodic...Ch. 3 - Prob. 17.7EPCh. 3 - Prob. 17.8EPCh. 3 - Before placing a purchase order, a department...Ch. 3 - Prob. 17.10EPCh. 3 - Prob. 18EPCh. 3 - Prob. 19EPCh. 3 - The Town of Willingdon adopted the following...Ch. 3 - During July 2016, the first month of the 2017...Ch. 3 - The Town of Bedford Falls approved a General Fund...Ch. 3 - The printout of the Revenues and Appropriations...Ch. 3 - Report. Review the computer generated budgetary...Ch. 3 - The following alphabetic listing displays selected...
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