Governments often collect cash or must record receivables before revenues are to be recognized in a governmental fund. What determines whether a liability or a deferred inflow is reported in these various situations?
Answer to relevant QuestionsModified accrual basis revenue recognition is often referred to as “near cash basis” revenue recognition. Explain why this statement probably is made. Do you agree? Explain.During the course of your audit of a city, you noted an $800,000 payment to the General Fund from an Enterprise Fund. The payment was recorded in both funds as a payment in lieu of property taxes. (a) How should this payment ...A county decided to keep land it bid in at its property tax sale to use for parks and recreation purposes. The redemption period has passed, and the county has a valid deed to the land. Taxes, interest, penalties, and ...The following transactions and events affected a Special Revenue Fund of Stem Independent School District during 20X4.1. The chief accountant discovered that (a) the $20,000 proceeds of a sale of used educational equipment ...Why would a school district consider changing certain expenditure recognition principles?
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