It is sometimes asserted that the absence of speciﬁc principles as to what constitutes “cost” detracts from the objectivity of the ﬁnancial statements of not only internal service funds but also ﬁnancial statements of the general fund. In what sense might this be true?
Answer to relevant QuestionsIt is often said that ‘‘self-insurance’’ is an oxymoron. Why? If it is, what are the implications for a government that is permitted to recognize self-insurance premiums as a general fund expenditure when paid to an ...The balance sheet of an enterprise fund reports an asset as “restricted cash and investments” and shows a portion of ‘‘net position’’ as restricted. Provide an example of the types of restrictions to which the ...The water and wastewater utility (enterprise) funds of three cities each paid $1 million in casualty insurance premiums. City A is insured by a small independent insurance company. City B is self-insured and accounts for its ...The data in the accompanying table were extracted from a city's fund statements (in millions).1. Prepare in summary form a government-wide statement of activities and a statement of net position. Although you need not ...The 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 ...
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