What is meant by “deferred inﬂow of resources?” Provide an example of when a government might credit such an account.
Answer to relevant QuestionsWhat is the earliest point in the sales tax collection process that revenue may be recognized? How can you justify recognizing revenue on the basis of this event? A student comments: ‘‘A government destroys a recently acquired car, sells the remains for scrap, and its general fund surplus for the year increases. That’s ridiculous. Government accounting makes so much less sense ...Green Hills County received the following two contributions during a year:• A developer (in exchange for exemptions to zoning restrictions) donated several acres of land that the county intended to convert to a park. The ...A state imposes a sales tax of 6 percent. The state’s counties are permitted to levy an additional tax of 2 percent. The state administers the tax for the counties, forwarding the proceeds to the counties 15 days after it ...On August 2, 30 days prior to the end of its August 31 ﬁscal year, a government issues $3 million of general obligation bonds. The proceeds are being accounted for in a capital projects fund (a governmental fund). To earn ...
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