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acct 404 db1 - local and state that everyone pays 4...

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RE: Analysis Case 1 Chapter 16 1) The government financial report is comprised of the Government Auditing Standards . I was unable to locate the supplemental information for Coke Cola’s reports. 2) There are differences between Government-Wide and Financial-Wide reconciliation of the balance sheet. The difference is the accounts that are being used in the journal entry or posting of account. The different accounts used for long-term liabilities. The Government-Wide will use Interest Expense verse Fund-Wide uses Expenditure-Interest . Modified accrual accounting recognizes expense one way and accrual accounting recognizes expense another. Both use different methods to recognize expenses. Government gets the advantage of using Internal Service funds for the reimbursement . 3) For-profit companies are able to gain revenue through sales and selling of assets. Government depends on property taxes and the sale taxes, which can also be broken down into
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Unformatted text preview: local and state, that everyone pays . 4) Expenditures will vary depending on the size and what division to the government financials one is looking at. Most classifications would come from public safety (law enforcement and transportation), sanitation, and related governmental programs. 5) The assets that are reported under General Fund show the current financial resources available. These assets would include investments, receivables, amounts due from funds, prepaid expense, inventory, and cash . 6) Government financial statements, I think, age the payables and receivables and use the sixty days aged report of activity on these accounts. They can also use the thirty and one hundred twenty days’ time frame. It is just a preference and the accountants or government officials decided which method to use. 7) The government is spending more than it takes in so, the General Fund is decreasing....
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