Questions from Accounting for Government and Non-Profit

Q: In anticipation of issuing of long-term bonds, a state

In anticipation of issuing of long-term bonds, a state issues on May 1, 2018, $200 million of 60-day BANs to finance highway construction. It expects to roll over the BANs into long-term bonds within...

Q: The following transactions affected a city’s general fund. Prepare a table

The following transactions affected a city’s general fund. Prepare a table in which you indicate for each transaction the expenditure/expense and change in liabilities that the city would report in it...

Q: Pearl City leases an emergency communications system. The term of the

Pearl City leases an emergency communications system. The term of the lease is 10 years, approximately the useful life of the equipment. Based on a sales price of $800,000 and an interest rate of 6 pe...

Q: The Green Hills Water District was established on January 1 to provide

The Green Hills Water District was established on January 1 to provide water service to a suburban development. It accounts for its operations in a single enterprise fund. During the year it engaged i...

Q: Do you think the current criteria for establishing enterprise funds are adequate

Do you think the current criteria for establishing enterprise funds are adequate? For example, are they too flexible in that governments may account for a wide range of activities in enterprise funds?...

Q: The City of Lewisville collected $600,000 in tap fees

The City of Lewisville collected $600,000 in tap fees last year. Of this amount, $400,000 covered the direct costs of connecting customers to the city’s water lines. The balance contributed to improve...

Q: You are the independent CPA for a medium-sized city.

You are the independent CPA for a medium-sized city. The city manager asks your guidance as to whether, according to generally accepted accounting principles, the municipal golf course should be accou...

Q: How would you compare the accounting for enterprise funds with that of

How would you compare the accounting for enterprise funds with that of (a) businesses and (b) governmental funds? Summarize the reasons both for and against accounting for enterprise funds differently...

Q: What are the major differences in expenditures/expenses (i.

What are the major differences in expenditures/expenses (i.e., reconciling items) as they are reported in the governmental fund and the government‐wide statements?

Q: Although proprietary fund accounting is similar to business accounting, there are

Although proprietary fund accounting is similar to business accounting, there are considerable differences in standards pertaining to the statement of cash flows. What are the main differences?