Do you think the current criteria for establishing enterprise funds are adequate? For example, are they too ﬂexible in that government may account for a wide range of activities in enterprise funds? Or are they too rigid in that governments must account for activities in enterprise funds if they satisfy speciﬁed criteria?
Answer to relevant QuestionsThe City of Lewisville collected $600,000 in tap fees last year. Of this amount, $400,000 covered the direct costs of connecting customers to the city’s water lines. The balance contributed to improvements in and ...What is the rationale for accounting for nonexpendable endowment funds on a full, rather than a modiﬁed, accrual basis? Why is it important that depreciation be charged on long-term assets held as ﬁduciary fund ...Distinguish between a deﬁned beneﬁt plan and a deﬁned contribution plan. Why does a deﬁned beneﬁt plan present far more complex accounting issues than a deﬁned contribution plan?Why do the balance sheets of agency funds contain only assets and liabilities, but no fund balances? Why is it often unclear whether the resources relating to a particular activity should be accounted for in an agency fund ...To promote computer education, a leading computer manufacturer donates $4 million to the Kerrville Independent School District. The donor stipulates that the district is to establish an endowment, from which income only is ...
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