Homework 2 - Homework 2, Questions 1-8, Problems 2, 5, 6, 7...

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Homework 2, Questions 1-8, Problems 2, 5, 6, 7 Questions 1. The core governmental services are governmental activities, these activities follow under GASB rules and their main way of accounting is by cost. The second activity is business-type activities which are meant to be self-supporting by charging users for the services they receive. These activities are accounted in a similar fashion to ordinary businesses. The last activity is fiduciary activities, which the government acts as an agent or trustee, for parties outside the government. 2. Business type activities are services that are self-supporting by charged to the users for the services received. An example would be public busses. Since business type activities are dealing similar to actual businesses, charging customers for a service, they have to be accounted for as a business would be on the accrual basis. 3. Fiduciary activities are when the government acts as an agent or trustee, for parties outside the government. The economic resources measurement focus and accrual basis of accounting. They are reported only in the fiduciary funds. 4. The governmental reporting entity consists of the primary government and certain other organizations, identified as component units, for which the primary government is financially accountable. GASB defines a primary government as a
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Homework 2 - Homework 2, Questions 1-8, Problems 2, 5, 6, 7...

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