"The primary purpose of an accounting system for a state or a local government is to make it possible for financial statements to demonstrate compliance with finance-related legal and contractual provisions." Explain why you believe this statement to be correct or incorrect.
What will be an ideal response?
The statement is not correct. The GASB specifies that a governmental accounting system must make it possible both to prepare statements in conformity with GAAP and to prepare legal compliance reports. The former are the basic financial statements on which auditors express an opinion; the latter are special purpose reports that may or may not be accompanied by auditors' reports.
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The _________-or the value of the total outstanding stock-of all foreign direct investment (FDI) worldwide was $26.3 trillion at the beginning of 2014.
Fill in the blank(s) with the appropriate word(s).
The EOQ model assumes that order lead time is?
a. Unknown b. Known, but variable c. Known and constant d. The EOQ model makes no particular assumptions about order lead time
A corporation is only a domestic corporation in its state of incorporation
Indicate whether the statement is true or false
A contract between a corporation and a holder that contains the terms of a debt security is known as a(n) ________.
A. debenture B. note C. indenture agreement/indenture D. fully collateralized total return swap