Prospect resident Mickey Locklear became concerned when reviewing the City of Prospect annual report because the amount of property taxes reported for the governmental funds in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances differs significantly from the amount of property taxes reported for governmental activities in the government-wide Statement of Activities. The resident is certain an error has occurred and calls it to the attention of Mayor Carol Hunt, who immediately calls in the chief accountant, Sheila Prevatte, to explain how such an error has occurred. Can such a discrepancy exist under generally accepted accounting principles applicable to governments? Explain.
Answer to relevant Questions(a) What is a joint venture? (b) Under what circumstances must a government apply the special joint venture accounting and disclosure requirements set forth in the GASB Codification? (c) What are those requirements?What conditions must be met for a component unit to be blended?Bowles County’s fund structure is as follows:General FundThree Special Revenue FundsOne Capital Projects FundTwo Debt Service FundsThree Internal Service FundsFive Enterprise FundsAssume that Special Revenue Fund #1, the ...Indicate where the following financial information for the City of Green Hope would be located within the financial section of their CAFR using the following key:(GW) Government-wide financial statements(FF) Fund financial ...A VHWO receives pledges from donors for contributions to be received annually over the next three years. When should these contributions be recognized as revenues? As changes in which net asset class? How should the amount ...
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