A village needs resources to finance its operations for the remainder of 2013. Poor internal control procedures under the previous administration created a serious funding problem for the new administration. The new mayor feels that if he get through the current year, he can develop a new budget and control future expenditures to create a surplus. After reviewing the village’s financial statements, the mayor wants to borrow from restricted assets in an Enterprise Fund (resources set aside, pursuant to a bond agreement, to ensure payment of debt service). The mayor is certain that future surpluses from the village’s operating bud get will allow him to replace the borrowed funds in 3 to 5 years. How would you respond to the mayor?
Answer to relevant Questions1. An Internal Service Fund is used when goods and/ or services are provided to _______. 2. A budget that is based on the level of activity attained in a fund is called a ________. 3. The _______ basis of accounting is used ...Does a government that offers pension benefits to its employees necessarily maintain a Pension Trust Fund? Explain. Does an Agency Fund have a fund balance? Why or why not? Describe the column headings generally used in the government- wide statement of net position. For each of the following events affecting Vicky’s Day Care Center in E15- 2, identify the accounts that would be increased and those that would be decreased: 1. The first of the 2 months for which rent had been paid, ...
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