Question: Upon examining the balance sheet of a large city you
Upon examining the balance sheet of a large city, you notice that the total assets of the general fund far exceed those of the combined total of the city’s ten separate special revenue funds. More-over, you observe that there are no funds for public safety, sanitation, health and welfare, and general administration—all important functions of the government. Why do you suppose the city hasn’t attempted to ‘‘even out’’ the assets in the funds? Why does it not maintain funds for each of its major functional areas?
Answer to relevant QuestionsWhy are there generally no capital projects (work in progress or other long-lived assets) in governments’ capital projects funds? Why are there generally no long-term debts in debt service funds? From what two perspectives must the ﬁnancial statements under the GASB No. 34 reporting model be prepared? How do the two differ from each other?A special district accounts for its general fund (its only fund) on a modiﬁed accrual basis. In a particular period it engaged in the following transactions:• It issued $20 million in long-term bonds.• It acquired ...Kendal County engaged in the following transactions. For each, prepare an appropriate journal entry and indicate the type of fund in which it would most likely be recorded:1. It levied and collected $1million in taxes and ...GASB Statement No. 34 has been widely criticized for mandating the preparation and presentation of government-wide statements. Mainly, the critics contend that the beneﬁts of the statements are not commensurate with the ...
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