Describe the alternative processes for capturing the financial accounting information required for government-wide financial statements.
What will be an ideal response?
There are two basic approaches to obtaining the information necessary to prepare the government-wide statements: (1) the dual-track approach which requires the accounting information system to be capable of capturing two bases of accounting (i.e., modified accrual and accrual) for each transaction as it is recorded in the underlying journals and ledgers, which is the approach presented in chapters 3-6 of the textbook and (2) conversion of fund accounting information at the end of a period (e.g., month or year) to accrual accounting, when appropriate, which is presented in Appendix A of the textbook.
You might also like to view...
Lenore is face with a dilemma in the workplace. She plans to follow the rational decision-making model to resolve this issue. Which of the following is the first step she should take?
A. gather information B. identify the problem C. generate alternatives D. develop action plans
Patrick owns an office building and leases space on a year-to-year basis. Patrick maintains a reversionary interest on the property
Indicate whether the statement is true or false
When comparing companies in the same industry but of different sizes, net profit margin is more meaningful than net profit as a dollar amount
Indicate whether the statement is true or false.
Dorcal, Inc. manufactures plastic components. The company has a low level of efficiency and low level of effectiveness, which means it is most likely to produce a
A. high-quality product that the company makes a profit on. B. product that customers want, but that is too expensive for them to buy. C. quality product that customers want at a price they can afford. D. low-quality product that customers do not want. E. high-quality product that customers do not want.