Why are encumbrances not considered expenditures under the modified accrual (GAAP) basis of governmental fund accounting?
Answer to relevant QuestionsMultiple Choice QuestionsIdentify the best answer for each of the following:1. General budgets are most common for which of the following funds?a. General Fund.b. Capital Projects Fund.c. Permanent Fund.d. Internal Service ...The city of Cherokee Hill adopted its fiscal year 20X8 General Fund budget, using the modified accrual basis of accounting, on January 1, 20X8. Budgeted revenues were $17 million; budgeted expenditures were $16,500,000.• ...Prepare the journal entries (budgetary and actual) to record the following transactions and events in the General Ledger, Revenues Ledger, and Expenditures Ledger of a local government General Fund. Identify whether the ...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?Multiple Choice QuestionsIdentify the best answer to each question:1. Each of the following criteria is a factor when determining Special Revenue Fund property tax revenue recognition except:a. Whether the taxes collected ...
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