The accountants for a city are attempting to determine the proper reporting for a new transaction so that the financial statements are in conformity with generally accepted accounting principles. No authoritative answer can be found. What should happen next? The city will receive a qualified audit report on its financial statements. The accountants can report the transaction in the way that they believe is best. The accountants should study other nonauthoritative sources such as GASB Concepts Statements and the official standards produced by FASB. The city will separate the transaction and report it separately in such a way as to draw attention to the method of reporting that was followed.
The accountants for a city are attempting to determine the proper reporting for a new transaction so that the financial statements are in conformity with generally accepted accounting principles. No authoritative answer can be found. What should happen next? The city will receive a qualified audit report on its financial statements. The accountants can report the transaction in the way that they believe is best. The accountants should study other nonauthoritative sources such as GASB Concepts Statements and the official standards produced by FASB. The city will separate the transaction and report it separately in such a way as to draw attention to the method of reporting that was followed.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The accountants for a city are attempting to determine the proper reporting for a new transaction so that the financial statements are in conformity with generally accepted accounting principles. No authoritative answer can be found. What should happen next?
- The city will receive a qualified audit report on its financial statements.
- The accountants can report the transaction in the way that they believe is best.
- The accountants should study other nonauthoritative sources such as GASB Concepts Statements and the official standards produced by FASB.
- The city will separate the transaction and report it separately in such a way as to draw attention to the method of reporting that was followed.
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