Questions from Accounting for Government and Non-Profit

Q: What is the earliest point in the sales tax collection process that

What is the earliest point in the sales tax collection process that revenue may be recognized? How can you justify recognizing revenue on the basis of this event?

Q: Explain the distinction between reimbursement grants and entitlements. How does this

Explain the distinction between reimbursement grants and entitlements. How does this distinction affect the way each type of grant is accounted for?

Q: A private citizen makes an unrestricted pledge of $5 million to

A private citizen makes an unrestricted pledge of $5 million to a city’s museum. The city is confident that the donor will fulfill her pledge. However, the cash will not be received for at least two y...

Q: What are pass-through grants? Under what circumstances must a

What are pass-through grants? Under what circumstances must a recipient government report them as both a revenue and an expenditure?

Q: A student comments: “A government destroys a recently acquired car

A student comments: “A government destroys a recently acquired car, sells the remains for scrap, and its general fund surplus for the year increases. That’s ridiculous. Government accounting makes so...

Q: You are the independent auditor of various governments. You have been

You are the independent auditor of various governments. You have been asked for your advice on how the following transactions should be accounted for and reported. Characteristic of each transaction i...

Q: The Hensley School District was notified by the state education department that

The Hensley School District was notified by the state education department that it has been awarded a $2 million grant to implement a unique elementary school reading program. The district has met all...

Q: The Lewiston School District receives a $200,000 grant from

The Lewiston School District receives a $200,000 grant from the Bates Foundation to upgrade its high school computer labs. Total cost of the upgrade is estimated at $450,000. Because the grant is rest...

Q: The city manager of Midfield summoned the city’s sanitation commissioner. He

The city manager of Midfield summoned the city’s sanitation commissioner. He had compared the service efforts and accomplishments data for the sanitation department with those for Lowville, a nearby c...

Q: Going 70 mph in a 60-mph zone, you’ve just

Going 70 mph in a 60-mph zone, you’ve just been caught in the infamous Goldwaithe Township speed trap. You pay your fine of $150. In the government-wide statement of activities, revenues must be assoc...