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.

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Answer 1

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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Activity Based Costing - practice problem Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $89,500 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities 1. Materials handling 2. Machine setups Cost Drivers Number of requisitions Number of setups Total cost $35,000 27,500 3. Quality inspections Number of inspections 27,000 $89.500 The cost driver volume for each product was as follows: Cost Drivers Instruments Gauge Total Number of requisitions 400 600 1,000 Number of setups 200 300 500 Number of inspections 200 400 600 Insructions (a) Determine the overhead rate for each activity. (b) Assign the manufacturing overhead costs for April to the two products using activity-based costing.

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Answer 2

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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Answer 3

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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Answer 4

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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Answer 5

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)

Answer 6

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)

Answer 7

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.

Answer 8

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.