Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Question
Chapter 17, Problem 1UTI
To determine
Introduction: The GASB is the board that provides the guideline to the governmental units about proper accounting of transactions. As per GASB, the accounting for funds of a governmental unit is different from that of private units.
To compare: Basis of accounting for governmental activities and business activities.
Expert Solution & Answer
Explanation of Solution
Governmental activities refer to the activities that are undertaken for the welfare of the people and the benefit of society.
Business activities refer to the activities that are performed with a purpose to generate revenue.
Basis of accounting for both can be compared as:
Governmental Activities | Business Activities |
The GASB is the board that provides the guideline to record governmental activities. | GAAP is followed to record the business-type activities. |
Three major statements are prepared when a governmental unit records such activities. | Four major financial statements are prepared when business records such activities. |
The statement of activities is the statement that is prepared only by the governmental units for such activities. | A statement of |
Inflows and outflows from governmental activities may be unassigned or assigned for a specific purpose. | Inflow and outflow of cash are incurred from specific activities but can be used anywhere. |
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Chapter 17 Solutions
Advanced Accounting
Ch. 17 - Prob. 1UTICh. 17 - Prob. 2UTICh. 17 - Prob. 3UTICh. 17 - Prob. 4UTICh. 17 - Prob. 5UTICh. 17 - Prob. 6UTICh. 17 - Prob. 4.1ECh. 17 - Prob. 4.2ECh. 17 - Prob. 4.3ECh. 17 - Prob. 4.4E
Ch. 17 - Prob. 4.5ECh. 17 - Prob. 4.6ECh. 17 - Prob. 4.7ECh. 17 - Prob. 4.8ECh. 17 - Prob. 4.9ECh. 17 - Prob. 4.10ECh. 17 - Prob. 5ECh. 17 - Prob. 6.1ECh. 17 - Prob. 6.2ECh. 17 - Prob. 6.3ECh. 17 - Prob. 6.4ECh. 17 - Prob. 6.5ECh. 17 - Prob. 6.6ECh. 17 - Prob. 7ECh. 17 - Prob. 17.1.1PCh. 17 - Prob. 17.1.2PCh. 17 - Prob. 17.1.3PCh. 17 - Prob. 17.1.4PCh. 17 - Prob. 17.1.5PCh. 17 - Prob. 17.1.6PCh. 17 - Prob. 17.1.7PCh. 17 - Prob. 17.1.8PCh. 17 - Prob. 17.1.9PCh. 17 - Prob. 17.1.10PCh. 17 - Prob. 17.1.11PCh. 17 - Prob. 17.1.12PCh. 17 - Prob. 17.3PCh. 17 - Prob. 17.4PCh. 17 - Prob. 17.5PCh. 17 - Prob. 17.7PCh. 17 - Prob. 17.8PCh. 17 - Prob. 17.9PCh. 17 - Prob. 17.11.1PCh. 17 - Prob. 17.11.2PCh. 17 - Prob. 17.11.3PCh. 17 - Prob. 17.12.1PCh. 17 - Prob. 17.12.2P
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Similar questions
- What measurement focus is used in government-wide financial statements, and what system is applied to determine the timing of revenue and expense recognition?arrow_forwardWhat databases are appropriate for government accounting?arrow_forwardWhat are the features of good government accounting?arrow_forward
- Distinguish between government and not-for-profit organizations from business entities and describe how the distinction affects their accounting processes.arrow_forwardDefine a financial reporting entity. Give an example of a primary government. Define and give an example of a component unit. Explain the two methods of reporting the primary government and component units in the financial reporting entity and when each is required.arrow_forwardThe modified accrual foundation of accounting should be explained. When preparing financial accounts for government entities, why is this method employed?arrow_forward
- Are the officers of the Local Government Unit internal or external users?why? Differentiate internal users from external users of accounting information?arrow_forwardIs the principles for recognizing revenue the same in government accounting and accounting for business entities? Yes or No... With explanationarrow_forwardWhat is GASB, Government Accounting Standards Board ?arrow_forward
- Compare the use of accrual accounting in federal government financial reporting with the use of accrual accounting in state or local government financial reporting.arrow_forwardActivities of a general purpose government that provide the basis for GASB's financial accounting and reporting framework consist of governmental, business-type, and fiduciary. a. True b. Falsearrow_forwardGovernment entities are interested in financial statements to determine compliance of business enterprises to regulations. True or Falsearrow_forward
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