Chap018-baker 8

Chap018-baker 8 - however, expenditures are not reported...

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Chapter 18 - Governmental Entities: Special Funds and Government-Wide Financial Statements 18-8 C18-4 (continued) h. The purpose of this question is for students to become acquainted with the balance sheet equation for the governmental funds: Assets = Liabilities + Fund Balance. Another goal for this question is for students to see that fund balance is separated into two components: (1) reserved and (2) unreserved. i. The purpose behind questions i - l is to help students understand the format of the statement of revenues, expenditures, and changes in fund balance. The first section deals with revenues, which are reported according to source. Students will discover that taxes are generally not the only source of revenue. j. The objective of this question is to get students to understand how governments report expenditures. Students may expect governments to report expenditures by object;
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Unformatted text preview: however, expenditures are not reported this way on the statement of revenues, expenditures, and changes in fund balance. k. The purpose of this question is to have students examine the items reported in other financing sources and uses. This should reinforce what they learn in the text when they read the section dealing with interfund transfers. l. This question covers the last items reported on the statement of revenues, expenditures, and changes in fund balance: special items, the change in fund balance for the year, and the ending fund balance at the end of the most recent year. Students should not expect to see any special items since their occurrence is rare. However, students should see the change in fund balance for the year being added to the beginning fund balance to produce ending fund balance....
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This note was uploaded on 10/09/2011 for the course ACC 253 taught by Professor Strimling during the Fall '11 term at Harper.

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