A federal agency receives a separate appropriation for supplies. A large number of purchase orders marked “Rush” are processed in August. Because several clerks are on vacation, they are not recorded as obligations. The supplies are received in early September, before the end of the fiscal year. After matching the invoices with the receiving reports, the accountant finds the agency has insufficient funds to process many of the payments. On further inquiry, the accountant locates the batch of unrecorded purchase orders. He also finds that the supplies were used immediately upon receipt. He explains the problem to his immediate supervisor, who says, “Forget it. Just charge the bills to next year’s appropriation.” Explain the nature of the accountant’s dilemma, and discuss what you think he should do.
Answer to relevant Questions(Multiple Choice) 1. Which funds are used by federal agencies to account for receipts of resources from specific sources, earmarked by law for special purposes? a. Special Revenue Funds b. Trust Fundsc. Revolving Funds d. ...On November 1, 2013, a federal agency had the following balances in two of its accounts: The budgetary account Allotments— realized resources had a credit balance of $ 250,000, and the proprietary account Fund balance with ...What characteristics distinguish NFPOs from for- profit organizations? What characteristics distinguish government organizations from NFPOs? State the four elements of the general rule for reporting the receipt of contributions other than services and collections. (Multiple choice) 1. How should expenses be reported in an NFPO’s statement of activities? a. As decreases in the net asset classification in which the revenues were reported b. As decreases of permanently restricted net ...
Post your question