Answered: Does a credit balance in the fund…

Does a credit balance in the fund balance account(s) at the end of the year necessarily mean the fund has sufficient cash to pay its liabilities in a timely manner? Explain.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 8E: a. Describe the entries that have been posted to the following accounts after the Change Fund was...

See similar textbooks

Related questions

Q: Which of the following serve as the basis for recording appropriate expenses each time the fund is…

A: The custodian is responsible for the petty cash fund. At the ending of accounting period the fund is…

Q: The long-term assets and liabilities are not generally accounted under general funds however it…

A: Long term assets are assets that a company uses in its production process and with a useful life of…

Q: Summarize the sources and uses of funds according to the changes in account activities?

A: The fund flow statement reveals the volume of financial transactions and explains the flow of funds…

Q: Please answer questions CASH BASIS VS ACCRUAL BASIS The IPSASB developed the IPSASs for…

A: Companies could use one of two accounting techniques: cash basis or accrual basis. The phrase "time…

Q: Given the information in Exhibit 11.2, calculate the bank's dity sources to liquidity needs. Is…

A: Liquidity sources refer to the mediums of generating money or liquid cash such as cash or cash…

Q: Why is it important to distinguish between long-term or ond long-term funds in business.

A: Solution Note Dear student as per the Q&A guideline we are required to answer the first question…

Q: In the cash flow statement, especially cash flows from funding activities, namely bonds payable. if…

A: Cash Flow Statement - Under Cash Flow, there are three types of activities involved - Operating…

Q: If property taxes levied for the current fiscal year are not collected until after the first 60 days…

A: The question pertains to Government Accounting which is generally based on standards defined by…

Q: What is the nature of the account Fund balance with Treasury? When is that account debited, and when…

A: Nature of accounts helps management to record the financial transactions as per double entry system…

Q: IPSASB developed

A: The IPSASB's current activities area unit centered on the event of International Public Sector…

Q: When do liabilities show up in a fund's financial statements based on current financial resources…

A: Introduction Government liabilities include pension payments, salary payments, payments for…

Q: 36 : In funds flow statement, repayment of long- term loans is 2848554354 Application of fund Source…

Q: (c) The fund's net worth is defined as the difference between its assets and liabilities. Using your…

A: Relative change refers to the change in the final value relative to the initial value. The formula…

Q: How much should be petty cash fund balance to be included in the statement of financial positions as…

A: The petty cash fund is established to maintain the cash balance for day to day cash transactions of…

Q: Which of the following statements is/are true in relation to Capital Expenditure Budgets? i. Shows…

A: A capital expenditure budget is a plan or schedule stating the amounts used to purchase the fixed…

Q: It is important to understand the difference between custodial and trust funds. How many financial…

A: However, custodial funds are not covered in any trust fund types under the GASB criteria. People,…

Q: Explain the distinction/s between custodial funds and trust funds. What financial statements…

Q: 3. Which of the following accounts appears on both the interim and year-end balance sheets of the…

A: Hi, since multiple questions are asked, we are solving the 1st question for you. To get the solution…

Q: How is the issuance of a long-term bond reported on fund financial statements? How is the issuance…

A: Reporting of issuance of long term bonds on fund financial statements: At the fund level the cash…

Q: In funds flow statement, outflow of funds on account of operations is [A] application of fund [B]…

A: The fund flow statement is prepared by the business to analyse the reason of changes in the…

Q: Can fund users (borrowers) such as corporations, raise funds through new issues of financial…

A: New issues, whether stocks or bonds, are a way for a firm to raise funds. An initial public offering…

Q: In addition to the three basic financial statements, which of the following is also a required…

A: The answer is as fallows

Q: Calculate the amount that J&J’s retirement fund obligations are underfunded as of each year-end. How…

A: Asset retirement obligation (ARO) is an obligation that arises on the acquisition of some specific…

Q: statement

Q: The total cash count minus the amount of the Change Fund should be equal to: a.the total current…

A: Cash Count represents the total cash at the counter at the end of the day and the change fund is…

Q: Which of the following best describe the flow of funds in a financial market? * a. suppliers of…

A: A financial market is any marketplace where finances can be obtained or financial instruments can be…

Q: In funds flow statement, repayment of long-term loans is [A] application of fund [B] source of cash…

Q: rement of money

A: Today, money is the need of every person. No business can be run without money. Money is needed from…

Q: In applying the current financial resources measurement focus, when are liabilities recognized in…

A: Introduction Liabilities of Government includes pension payments, salary payments, payments for…

Q: To assist users better comprehend "Transfers in" to the General Fund, describe the types of note…

A: `1This question explains about the "Transfers in" to the General Fund

Q: State the kinds of note disclosures that need to be made to help users understand the nature of…

A: Question is answered based on Government Accounting. A general fund is a primary fund used by a…

Q: In funds flow statement, funds from operations is [A] application of fund [B] source of cash [C]…

Q: A Funds Flow Statement is a financial document that analyses a company’s Balance Sheet of two years…

A: A fund flow statement is that financial statement that helps to analyze the company balance sheet…

Q: 1. How much is the annual deposit to the fund? 2. How much is the fund balance as of December 31,…

A: Balance at the end which is required at the end of the specified period, the investor or company…

Q: Identify the most significant cash inflow and outflow activity from Financing activities for the…

Q: Which of the following serve as the basis for recording appropriate expenses each time the fund is…

A: Petty cash book is best document for recording appropriate expenses each time the fund is…

Q: lec

A: Explanation : In simple words, banks can be understood as the financial institutions that work as a…

Q: Based upon the flow information provided below for the year ending December 31, 2014, prepare a cash…

A: Cash Flow Statement is a part of financial statement in which the corporation discloses the inflows…

Q: To assist users better comprehend "Transfers in" to the General Fund, describe the types of note…

A: The following is an answer based on government accounting: A general fund is a kind of leading fund…

Q: Which of the following statements is false? Unmatured principal installments and accrued…

A: Liabilities should be reported when the transaction resulted in the amount that needs to be paid in…

Question

Does a credit balance in the fund balance account(s) at the end of the year necessarily mean the fund has sufficient cash to pay its liabilities in a timely manner? Explain.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

What is a fund? Distinguish between a fund and an appropriation of retained earnings.
Which of the following serve as the basis for recording appropriate expenses each time the fund is replenished? a. Receipts b. Request letter from cash custodian C Cheques issued to cash custodian d. None of the given options
What are types of activities are reported in Custodial Funds?
After closing entries, a special revenue fund's Fund Balance account represents the net amount of resources available for future appropriation. O true false
The total cash count minus the amount of the Change Fund should be equal to: a.the total current liabilities. b.the expenses incurred. c.the income earned. d.the total revenue earned.
Governmental funds report. Multiple select question. liabilities that will be settled with current financial resources assets to be converted to cash in the normal course of operations long-term assets that will not be sold during the current year long-term liabilities cash
Which fund category accounts on a modified accrual basis? What are the revenue and expense recognition requirements for the modified accrual basis of accounting?
What is the electronic fund's transfer (EFT) system?
In funds flow statement, repayment of long-term loans is [A] application of fund [B] source of cash [C] application of cash [D] source of fund
Encumbrances outstanding at year-end in a state’s general fund should be reported as a a. liability in the general fund. b. fund balance reserve in the general fund. c. liability in the general long-term debt account group. d. fund balance designation in the general fund.
Scope: Sources and Uses of Short-Term and Long-Term Funds
Which of the following neither increases nor decreases fund balance of the General Fund during the current period? a. Revenues. b. Other financing sources. c. Deferred revenues. d. Expenditures.