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Unformatted text preview: Homework3, Questions 1 – 9, Problems 2,3,4,5,8,9 Questions 1. Governmental fund financial statements focus only on the current term fiscal accountability. Oprational accountability makes sure that the readers of the financial know how the governmental fund is going to be in the medium and long term future. 2. Financial statement users benefit from the net(expense) revenue section because it identifies how much of the general fund each program or function uses up and also which ones can be self-financed through fees and intergovernmental aid. 3. Depreciation Expense is a direct expense because it is better way for financial statement users to figure out how certain functions and programs are doing. 4. a. unrestricted operating grants that can be used at the discretion of the city council – general revenue b. Capital grants restricted for highway construction – program revenue c. Charges for building inspection – program revenues d. A special assessment for snow removal – program revenue e. Fines and forfeits – program revenue f. Motor vehicle fuel taxes restricted for road repair – program revenue g. Unrestricted investment earnings – general revenue 5. Extraordinary I tems are transactions or other events that are both unusal in nature and infrequent in occurrence. nature and infrequent in occurrence....
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This note was uploaded on 04/26/2010 for the course ACC 639 taught by Professor Mccarthy during the Spring '10 term at St. Johns Duplicate.
- Spring '10