An encumbrance is still outstanding at the end of the fiscal year. The government anticipates that it will honor this encumbrance in the next year. How does the government report this encumbrance?
Answer to relevant QuestionsWhat costs cause a governmental fund to report an expenditure?How is the issuance of a long-term bond reported on fund-based financial statements? How is the issuance of a long-term bond reported on government-wide financial statements?Multiple choice Questions1. Which of the following is not a governmental fund?a. Special Revenue Fund.b. Internal Service Fund.c. Capital Projects Fund.d. Debt Service Fund.2. What is the purpose of a Special Revenue Fund?a. ...A city has only one activity, its school system. The school system is accounted for within the General Fund. For convenience, assume that, at the start of 2010, the school system and the city have no assets. During the year, ...An art display set up for the community was recorded within the General Fund and generated revenues of $9,000 but had expenditures of $45,000 ($15,000 in expenses and $30,000 to buy land for the display). The CPA firm has ...
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