Normally, a reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements. C. Statements include the Statement of Net Assets (Balance Sheet); Statement of Revenues, Expenses and Changes in Fund Net Assets: and Statement of Cash Flows. D. The Statement of Cash Flows may be prepared using either the direct or indirect methods. 7. Which of the following choices regarding the fiduciary fund financial statements is true?
Merliss wants to be sure that all reporting for this transaction is proper and transparent. The company asks you to research disclosure requirements related to its capital structure. A) Identify the authoritative literature that addresses disclosure of information about capital structure. Statement of Financial Accounting Standards (SFAS) No. 129 This statement sets standards for disclosing information about an entity’s capital structure.
CON 6 defines assets as: "probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events" (par. 25). An asset is described as having three essential characteristics: "(a) it embodies a probable future benefit that involves a capacity, singly or in combination with other assets, to contribute directly or indirectly to future net cash inflows, (b) a particular entity can obtain the benefit and control others’ access to it, and (c) the transaction or other event giving rise to the entity’s right to or control of the benefit has already occurred." (par. 26) Based on the facts, it appears that conditions (b) and (c) for asset classification are met.
Assurance services are a “broad range of information enhancement services provided by CPA firms, [sic] such as ours” (Whittington & Pany, 2008, p. 2). The goal of an assurance service is for the CPA firm to issue a report about the reliability of an assertion made by the audited entity. There are four different categories of assurance services: audit of historical financial statements, effectiveness of internal control over financial reporting, review of historical financial statements, and other attestation services that may be applied to a broad range of subject matter (Arens, Elder, & Beasley, 2006, p.
Discuss how Hincapie should report the proposed preferred stock issue. * General Disclosure- either on the face of the financial statement by means of parenthetical disclosure, or in the Notes of the financial statements "o 505-10-50-2: If both financial position and results of operations are presented, disclosure of changes in the separate accounts comprising shareholders’ equity (in addition to retained earnings) and of the changes in the number of shares of equity securities during at least the most recent annual fiscal period and any subsequent interim period presented is required to make the financial statements sufficiently informative. Disclosure of such changes may take the form of separate statements or may be made in the basic financial statements or notes thereto " "o 505-10-50-3: An entity shall explain, in summary form within its financial statements, the pertinent rights and privileges of the various securities outstanding. Examples of information that shall be disclosed
Merliss wants to be sure that all reporting for this transaction is proper and transparent. The company asks you to research disclosure requirements related to its capital structure. A .Identify the authoritative literature that addresses disclosure of information about capital structure. Statement of Financial Accounting Standards (SFAS) No. 129 This statement sets standards for disclosing information about an entity’s capital structure.
What is the relationship between an operating and a cash budget? Why is it important for an organization to prepare a cash budget? According to "Cliffnotes.com" (2012), “The cash budget is prepared after the operating budgets (sales, manufacturing expenses or merchandise purchases, selling expenses, and general and administrative expenses) and the capital expenditures budget are prepared. The cash budget starts with the beginning cash balance to which is added the cash inflows to get cash available. Cash outflows for the period are then subtracted
Materiality of NFP organizations should be based on the Total Assets figure. Therefore, Total Assets will be used to set materiality based on: (i) User needs and (ii) Risk. Planning materiality should therefore be set at 0.5% of Total Assets. Performance materiality should in turn be 75% of planning materiality. In calculating materiality, we have considered legal, regulatory or contractual requirements, restrictions imposed by donors and the requirements or restrictions set by grantor organizations.
Most often, it measures the maximum amount of commercial bank money that can be created by a given unit of central bank money. That is, in a fractional-reserve banking system, the total amount of loans that commercial banks are allowed to extend (the commercial bank money that they can legally create) is a multiple of reserves; this multiple is the reciprocal of the reserve ratio, and it is an economic multiplier. The role of the multiplier is to give predictions to the Federal Reserve about the change in the money supply that would result from a given change in the monetary base. Also to measure the maximum amount of commercial bank money that can be created by a given unit of central bank money (monetary policy). To add on the role of the money multiplier it is also to consider the monetary and fiscal policies as well as how banking system works in creating money.
Line item budgeting provides feedback on the extent of revenues and expense living up to the anticipated revenues and expense planning; it relates process to inputs and answers the question, Are agency and programs in keeping with approved budgets? While performance budgeting systems relate outputs to inputs and answers the question, How efficient are the agency's programs? The feedback from performance budgeting systems provides programmatic and financial performance feedback of the extent of the agency’s programs produces outputs, quality, and outcomes and their