Questions from Accounting for Government and Non-Profit

Q: Policy changes and other measures will have varying effects on reported revenues

Policy changes and other measures will have varying effects on reported revenues. The board of trustees of an independent school district is contemplating several policy changes and other measures, al...

Q: In some types of transactions, assets are recognized concurrently with revenues

In some types of transactions, assets are recognized concurrently with revenues; in others they are not. In October 20Xl, the Village of Mason levied $80 million of property taxes for its 20X2 fiscal...

Q: Did the city face any natural disaster that caused an impairment to

Did the city face any natural disaster that caused an impairment to its capital assets? How was that reported and accounted for?

Q: The reporting of on-behalf payments may have political consequences.

The reporting of on-behalf payments may have political consequences. In 20Xl, the Bakersville Independent School District incurred $12 million in expenditures for teachers' salary and benefits. In tha...

Q: The tax code can be used as a way to avoid reporting

The tax code can be used as a way to avoid reporting expenditures. To encourage both economic development and environmental sustainability, State No. 1 has offered grants of up to $10 million to any c...

Q: One-shots" have a greater impact on cash-based

One-shots" have a greater impact on cash-based budgets than on accrual-based financial statements. A city recently proposed the following "one-shot" measures to help balance its 20Xl general fund budg...

Q: Inventory transactions can be derived from year-end balances.

Inventory transactions can be derived from year-end balances. All the amounts shown relate only to supplies. All purchases during the year were paid in cash. Assume that the city uses the consumption...

Q: The following is an excerpt from a note to the financial statements

The following is an excerpt from a note to the financial statements of an actual major city. The city accounts for inventories on the consumption basis. One of the city's departments, which is account...

Q: Can a government sell assets to itself to generate revenue?

Can a government sell assets to itself to generate revenue? A city is having fiscal problems in 20Xl. It expects to report a deficit in its general fund, the only fund that is statutorily required to...

Q: Accounting practices for interest expenditures may neither reflect actual economic costs nor

Accounting practices for interest expenditures may neither reflect actual economic costs nor mirror those for interest revenues. A town plans to borrow about $10 million and is considering three alter...