An employment agency for individuals with disabilities works closely with the City of Hanover. The employment agency is legally separate from the city but still depends on it for financial support, which leads to a potential financial burden for the city. How should Hanover report the employment agency in its comprehensive annual financial report? Not at all because the agency is legally separate. As a part of the general fund. As a component unit. As a related organization.

An employment agency for individuals with disabilities works closely with the City of Hanover. The employment agency is legally separate from the city but still depends on it for financial support, which leads to a potential financial burden for the city. How should Hanover report the employment agency in its comprehensive annual financial report? Not at all because the agency is legally separate. As a part of the general fund. As a component unit. As a related organization.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter1: Role Of Accounting In Society

Section: Chapter Questions

Problem 10MC: Which of the following is likely not a type of not-for-profit entity? A. public library B. community...

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An employment agency for individuals with disabilities works closely with the City of Hanover. The employment agency is legally separate from the city but still depends on it for financial support, which leads to a potential financial burden for the city. How should Hanover report the employment agency in its comprehensive annual financial report? Choose the correct.a. Not at all because the agency is legally separate.b. As a part of the general fund.c. As a component unit.d. As a related organization.
Which of the following is likely not a type of not-for-profit entity? A. public library B. community foundation C. university D. local movie theater
1) State whether each of the following items should be classified as taxes, licences and permits, intergovernmental revenues, charges for services, fines and forfeits or miscellaneous revenue in a governmental fund. g) Charges to a local university for extra city police protection during sporting events. h) Barbers and hairdressers’ registration fees. i) Donation to government due to coronovirus. j) Parking
A city constructs curbing in a new neighborhood and finances it as a special assessment. Under what condition should these transactions be recorded in an agency fund? Never; the work is reported in the capital projects funds. Only if the city is secondarily liable for any debt incurred to finance construction costs. Only if the city is in no way liable for the costs of the construction. In all cases.
Which of the following would likely NOT avoid UBIT for an exempt organization? A. The activity is regularly carried on by the organization. B. The individuals who perform substantially all of the work are volunteers. C. The activity is carried on for the benefit of its members. D. The majority of the items sold have been donated to the organization.
Chase City uses an internal service fund for its central motor pool. The assets and liabilities account balances for this fund that are not eliminated normally should be reported in the government-wide statement of net position as: Governmental activities. OBusiness-type activities. Fiduciary activities. Note disclosures only.
A city constructs curbing in a new neighborhood and finances it as a special assessment. Under what condition should these transactions be recorded in an agency fund? Choose the correct.a. Never; the work is reported in the capital projects funds.b. Only if the city is secondarily liable for any debt incurred to finance construction costs.c. Only if the city is in no way liable for the costs of the construction.d. In all cases.
State and local governments and not-for-profit organizations that receive grants or contracts from the federal government should charge costs of these grants or contracts in conformity with: a) Cost Accounting Standards Board standards. b) Office of Management and Budget circulars. c) Financial Accounting Standards Board standards. d) Governmental Accounting Standards Board standards.
Which of the following is likely not a type of not-for-profit entity? public library community foundation university local movie theater
Which of the following statements is true?a. All not-for-profit organizations must include a statement of functional expenses.b. Donor-restricted contributions whose restrictions have been met in the reporting period may be reported as unrestricted support.c. Statements should focus on the individual unrestricted and restricted funds of the organization.d. FASB ASC 958-605 contains requirements that are generally more stringent than those relating to for-profit organizations.
An unqualified opinion on the financial statements of a local government means that all statements in the comprehensive annual financial report (CAFR) have been audited and conform with GAAP." Do you agree or disagree? Why? Describe the difficulty in comparing the financial performance of a not-for-profit organization to other similar organizations. What benchmarks are available to assist in this task? Describe the treatment of a not-for-profit, nongovernmental foundation that is related to a public university under GASB standards. What are the benefits to a state or local government of establishing an audit committee?
Identify the types of financial statements issued annually by federal agencies. Compare and contrast them against the financial statements issued by a state government and a for-profit business. Discuss why there is a difference between the three.