Question

In addition to government wide statements, governmental units must also prepare fund financial statements. The fund...

In addition to government wide statements, governmental units must also prepare fund financial statements. The fund statements are different from those statements prepared by for-profit companies. How and why are they different?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. Fund financial statements are prepared by government for recording funds that are received for specific purpose to be used for granting authority or donar. Fund accounting ensures that the monitoring and observance of the restrictions and limitations on such funds are done properly.

Where as financial statements prepared by for profit organizations report total income and total expenditures.

2. The main factor in preparing fund financial statements is accountability , that the specified fund is utilised for the required purpose.

Where as the purpose of financial statements of for profit organization is to report net profit or loss, that is profitability factor.

3. Fund accounting uses modified accrual accounting, where as for profit financial statements uses accrual or cash method of accounting.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following types of adjustments to the government fund financial statements are necessary to...
Which of the following types of adjustments to the government fund financial statements are necessary to prepare the governmental activities portion of the government-wide financial statements? A)Capital assets and related depreciation must be recorded B) Proceeds from issuing long-term debt must be recorded as liabilities C) Expenses must be recognized when incurred so noncurrent liabilities from current transactions and events must be reported D) Revenues must be recognized on the accrual basis of accounting so the governmental fund “measurable and...
Prepare the necessary governmental fund and government-wide journal entries, assuming a December 31, 2019 fiscal year...
Prepare the necessary governmental fund and government-wide journal entries, assuming a December 31, 2019 fiscal year end. When the budget was prepared, the city actuary advised the finance commissioner that the required pension contribution for the year, based on actuarial standards and GASB requirements, would be $60,000.  However, the amount appropriated was only $49,000.  The city does not intend to increase the appropriation.  A check for $49,000 is sent to the city’s pension fund. Governmental Fund: Pension Expenditure $49,000       Cash $49,000 Government wide:...
Fund Financial Statements for funds other than the proprietary and fiduciary funds differ from the Government-Wide...
Fund Financial Statements for funds other than the proprietary and fiduciary funds differ from the Government-Wide financial statements for which reasons? a.The modified accrual accounting approach is used with fund accounting. b.The current financial resources measurement basis is used with fund accounting. c.Measurement focus is on government as a whole for fund financial statements d.Fund Financial Statements differ from the Government-Wide financial statements for all of the above reasons.
GASB Statement No. 34 mandates that the government reconcile total governmental fund balances per the fund...
GASB Statement No. 34 mandates that the government reconcile total governmental fund balances per the fund balance sheet with net assets of governmental activities per the government-wide statements. What are likely to be the two largest reconciling items for most major cities? Why?
Explain the different objectives, measurement focus, and basis of accounting of the government-wide financial statements and...
Explain the different objectives, measurement focus, and basis of accounting of the government-wide financial statements and fund financial statements of state and local government.
The comprehensive annual financial report (CAFR) is prepared by every governmental entity. Below is a listing...
The comprehensive annual financial report (CAFR) is prepared by every governmental entity. Below is a listing of the items in the CAFR. Place them in the proper order by numbering them in the space provided. (Assign a numeral from 1 to 12 (i.e., "1", "2") in each indicated cell.) Balance sheet - governmental funds Management’s discussion and analysis (MD&A) Required supplementary information (other than MD&A) Government-wide statement of activities Statement of revenues, expenses, and changes in net position - proprietary...
Impact of Government Events Indicate how each of the following transactions impacts the fund balance of...
Impact of Government Events Indicate how each of the following transactions impacts the fund balance of the general fund for fund-based financial statements, and what the impact is on the net asses balance for the governmental finds for government-wide financial statements. Fund A transfers $20,000 to Fund B. For each of the following, indicate whether the statement is true or false and, if false, explain why. a.If Fund A is the general fund and Fund B is an enterprise fund,...
Indicate which financial statements must be included in the comprehensive annual financial report (CAFR) in each...
Indicate which financial statements must be included in the comprehensive annual financial report (CAFR) in each set of fund statements or government-wide statements by clicking the corresponding boxes. If an item does not apply, leave the corresponding box blank. You may check more than one box for each item. Financial statement Governmental funds Proprietary funds Fiduciary funds Government-wide 1. Balance sheet 2. Statement of activities 3. Statement of cash flows 4. Statement of changes in fiduciary net position 5. Statement...
Prepare journal entries for the City of Pudding’s governmental funds to record the following transactions, first...
Prepare journal entries for the City of Pudding’s governmental funds to record the following transactions, first for fund financial statements and then for government-wide financial statements. a.A new truck for the sanitation department was ordered at a cost of $94,000. b.The city print shop did $1,200 worth of work for the school system (but has not yet been paid). c.An $11 million bond was issued to build a new road. d.Cash of $140,000 is transferred from the general fund to...
The following information is available for the preparation of the government-wide financial statements for the City...
The following information is available for the preparation of the government-wide financial statements for the City of Northern Pines for the year ended June 30, 2017: Expenses: General government $ 9,740,000 Public safety 23,094,000 Public works 12,239,000 Health and sanitation 6,235,000 Culture and recreation 4,215,000 Interest on long-term debt, governmental type 1,025,000 Water and sewer system 11,596,000 Parking system 421,000 Revenues: Charges for services, general government 1,115,000 Charges for services, public safety 1,216,000 Operating grant, public safety 701,000 Charges for...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT