Question: Governments are not required to accrue interest on long term debt
Governments are not required to accrue interest on long-term debt in governmental funds even if the interest is applicable to a current period and will be due the ﬁrst day of the following year. Explain and justify the standards that permit this practice.
Answer to relevant QuestionsA school district accounts for its pension costs in a governmental fund. In a particular year the district’s actuary recommends that it contribute $18 million for the year. The district, however, had only budgeted $15 ...The Eaton School District engaged in the following transactions during its ﬁscal year ending August 31, 2015.• It established a purchasing department, which would be accounted for in a new internal service fund, to ...Prepare general fund journal entries to record the following cash transfers that a city made from its general fund to other funds. Be sure your entry reflects the nature of the transfer.1. $4,000,000 to provide ...A town plans to borrow about $10 million and is considering three alternatives. At own ofﬁcial requests your guidance on the economic cost of each of the arrangements and advice as to how they would affect the towns ...A city on the coast of Florida has incurred losses (including impairment of assets, clean-up costs, additional public safety costs, etc.) of $50 million owing to a recent hurricane. This was the third time in as many years ...
Post your question