A government accounts for inventory on the purchases basis. Why must it off set its year-end inventory balance with an addition to fund balance?
Answer to relevant QuestionsMany accountants note that for most governments the reported ‘‘bottom line’’ of their ﬁnancial statements (i.e., revenues less expenditures/expenses and other charges that affect fund balance/net position) will not ...Per GASB standards if a government gives a cash advance to a grantee and the grantee has not yet satisﬁed all eligibility requirements, the government would offset its credit to cash with a debit to an asset.By contrast, ...In 2015, employees of Pecos River County earned $5 million in vacation pay. They were paid for $4.2 million but deferred taking the balance of their earned vacations until subsequent years. Also, employees were paid ...A city is having ﬁscal problems in 2015. It expects to report a deﬁcit in its general fund, the only fund that is statutorily required to be balanced.To eliminate the anticipated deﬁcit the city opts to “sell” its ...A state’s department of human resources is responsible for providing certain training courses for various agencies within the state. The department does not actually conduct the training itself. Instead it contracts with ...
Post your question