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ch02web - CHAPTER 2 PRINCIPLES OF ACCOUNTING AND FINANCIAL...

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CHAPTER 2: PRINCIPLES OF ACCOUNTING AND FINANCIAL REPORTING FOR STATE AND LOCAL GOVERNMENTS Answers to Questions 2-1. Certain core services are provided by most general purpose governments—those related to the protection of life and property (e.g., police and fire protection), public works (e.g., streets and highways, bridges, and public buildings), parks and recreation facilities and programs, and cultural and social services, among others. Governments must also incur costs for general administrative support (such as, data processing, finance, and personnel) of its service departments. Core governmental services, together with general administrative support, comprise the major part of what GASB refers to as governmental activities . The measurement focus and basis of accounting for these activities is on the flow of current financial resources on the modified accrual basis in the governmental funds and on the flow of economic resources on the accrual basis in the governmental activities column of the government-wide financial statements. 2.2.
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This note was uploaded on 04/08/2008 for the course AC 456 taught by Professor Parsons during the Spring '08 term at Alabama.

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ch02web - CHAPTER 2 PRINCIPLES OF ACCOUNTING AND FINANCIAL...

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