Governmental and Nonprofit Accounting (11th Edition)
11th Edition
ISBN: 9780133799569
Author: Robert J. Freeman, Craig D. Shoulders, Dwayne N. McSwain, Robert B. Scott
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 10E
1.
To determine
Analyze the following transactions, assuming that a business-type activity was involved and reflect any necessary year-end interest accruals in the borrowing transactions.
2.
To determine
Analyze the following transactions, assuming that a general government activity was involved and reflect any necessary year-end interest accruals in the borrowing transactions.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The objective of general financial reporting is to provide financial information about thereporting entity that is useful to existing and potential investors, lenders and other creditorsin making decisions relating to providing resources to the entity. To make the necessarydecisions users need to obtain information and assess those decisions that are NOTrelevant. Which of the following options are not relevant for users to assess?1. Prospects for past net cash inflows to the entity.2. Decisions about providing or settling loans and other forms of credit.3. Decisions about exercising rights to vote on, or otherwise influence, management’sactions that affect the use of the entity’s economic resources.4. Decisions about buying, selling or holding equity and debt instruments.
Why are payments received from customers in advance, for either services to be performed and/or for goods to be delivered, classified as liabilities upon the receipt of the funds?
The purchase of equipment financed by a long-term notes payable is an example of ________.
A
non-cash investing and financing activity
B
investing activity
C
operating activity
D
financing activity
Chapter 2 Solutions
Governmental and Nonprofit Accounting (11th Edition)
Ch. 2 - Governmental accounting systems are different from...Ch. 2 - Funds used in state and local government...Ch. 2 - Prob. 3QCh. 2 - Why are a municipalitys general capital assets and...Ch. 2 - Prob. 5QCh. 2 - Under what circumstances should a government use a...Ch. 2 - Identify the fund types that are classified as...Ch. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10Q
Ch. 2 - Define interfund loans and interfund transfers,...Ch. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - What is the accounting equation for a governmental...Ch. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Prob. 18QCh. 2 - Prob. 1.1ECh. 2 - Financial assets include a. capital assets that...Ch. 2 - All of the following are considered governmental...Ch. 2 - Each of the following is a fiduciary fund except...Ch. 2 - Prob. 1.5ECh. 2 - Which of the following transactions would not be...Ch. 2 - The transactions associated with a Community...Ch. 2 - The city of Hannah has established a trust to...Ch. 2 - A transaction in which a municipal electric...Ch. 2 - Prob. 1.10ECh. 2 - The operations of a municipal governments public...Ch. 2 - The proceeds of a federal grant made to assist in...Ch. 2 - The receipts from a special tax levy to retire and...Ch. 2 - The operations of a municipal swimming pool with...Ch. 2 - Prob. 2.5ECh. 2 - A municipalitys issuance of general obligation...Ch. 2 - Expenditures of 200,000 were made during the year...Ch. 2 - The activities of a central motor pool that...Ch. 2 - A city collects property taxes on behalf of the...Ch. 2 - A transaction in which a municipal electric...Ch. 2 - (Fund and Nonfund Accounts Identification)...Ch. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - a. Analyze the effects of each of the following...Ch. 2 - a. Analyze the effects of the following...Ch. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - (State of CaliforniaFund Identification) The...Ch. 2 - a. Analyze the effects of the following...
Knowledge Booster
Similar questions
- The objective of general financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions relating to providing resources to the entity. To make the necessary 3. decisions users need to obtain information and assess those decisions that are NOT relevant. Which of the following options are not relevant for users to assess? 1. Prospects for past net cash inflows to the entity. 2. Decisions about providing or settling loans and other forms of credit. 3. Decisions about exercising rights to vote on, or otherwise influence, management's actions that affect the use of the entity's economic resources. 4. Decisions about buying, selling or holding equity and debt instruments.arrow_forwardA taxpayer with economic activity connected to virtual currency must do which of the following? Select one: a. Indicate this activity via the question on the top of the Schedule 1. b. Determine the net capital gains for all transactions which take place during the year. c. Maintain accurate records of purchases, sales, and conversions of all virtual currency. d. All of the above.arrow_forwardWhat would be the appropriate account title for funds collected by a sales tax custodial fund? A. Sales tax revenue B. Other financing sources C. Additions-tax collections for other governments D. Sales taxes receivablearrow_forward
- Use IFRS 9 to determine how to subsequently measure the following financial assets. Three choices of measurement basis are amortized cost, fair value through other comprehensive income, and fair value through profit or loss. Provide justification for your choice. Long-term loans that are held for collecting contractual cash flows till their maturities, but may be subsequently sold if the loans’ credit risk substantially increases. Investments in bonds that are held for collecting contractual cash flows, and may be subsequently sold to re-invest the cash in financial assets with a higher return. Subprime (high risk) mortgage loans that were originated by a mortgage-broker firm that always sell these loans to banks right after their origination. Forward contracts that an EU bank purchased to hedge the exposure to changes in fair value of US$-denominated loans. Investment in bonds that are convertible into common stock of the bond issuer. Investment in bonds that pay a variable market…arrow_forwardAccess the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ). Determine the specific citation for accounting for each of the following items: 1. Disclosure of interest and income taxes paid if the indirect method is used. 2. Primary objectives of a statement of cash flows. 3. Disclosure of noncash investing and financing activities.arrow_forwardOwnership of debt instruments of the government and other companies that can be readily converted to cash are best reported as: Select one: a. long-term investments. b. intangibles c. marketable securities. d. Cash.arrow_forward
- View Policies Current Attempt in Progress Financing activities involve O cash receipts from sales of goods and services. O long-term liability and owners' equity items. O lending money to other entities and collecting on those loans. O acquiring and disposing of productive long-lived assets. Save for Later Attempts: 0 of 1 used Submit Answerarrow_forwardFunds are transferred in ____________ when one party purchases financial assets previously held by another party a. Medium of exchange b. Financial Institutions c. Financial Markets d. Financial Instrumentsarrow_forwardClassify the following items as (1) on-balance-sheet assets, (2) on-balance sheet liabilities, (3) offbalance-sheet assets, (4) off-balance-sheet liabilities, or (5) capital account. • Loan commitments. • Loan loss reserves. • Letter of credit. • Bankers acceptance. • Rediscounted bankers acceptance. • Loan sales without recourse. • Loan sales with recourse. • Forward contracts to purchase. • Forward contracts to sell. • Swaps. • Loan participations. • Securities borrowed. • Securities lent. • Loss adjustment expense account (PC insurers). • Net policy reservesarrow_forward
- 7) In ____________, funds are transferred when one party purchases financial assets previously held by another party. a. Medium of exchange b. Financial instruments c. Financial markets d. Financial institutionsarrow_forwardMatch term to the correct definition. The balance on which interest is paid. Interest paid both on the original investment and on all interest that has been added to the original investment. An investment that gives you a share of ownership in a company. An investment that represents a promise of future cash. Usually issued by either a government or a corporation. The issuer pays you back your initial investment as well as simple interest earned on that investment.…arrow_forwardWhich of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. Investmentarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education