Other types of funds are used in accordance with Generally Accepted Accounting Principles (GAAP). Special revenue funds record activities funded by restricted monies such as Public Health, Friend of the Court, and all grant-funded activities. Debt Service Funds record transactions related to assessment of tax levies and payment of principal and interest of long-tern debt. Capital project funds account for the purchase or construction of major facilities such as buildings, drains, and sewer projects.
Internal service funds account for operations in which goods or services are provided by one government department to other funds, departments, or agencies within the same governmental unit or occasionally to other governmental units on a user-charge or cost reimbursement basis (Granof & Khumawala, 2013). This type of funds serves as an effective way to identify the costs of providing services such as: motor pools, central duplicating and printing services, central data processing services, central purchasing, central stores, communications and self-insurance activities. (Mercer County Community College, 2010).
The City of Detroit, founded in 1701, and incorporated in 1806, is in Wayne County, State of Michigan. Detroit is on an international waterway, which connects by means of the St. Lawrence Seaway to seaports around the world. Existing as the largest city in the State of Michigan, Detroit is notorious for its tradition in automotive and is a colloquialism for the automobile industry in the United States. Detroit is also known for its popular music legacies, which residents celebrate in several familiar nicknames, Motor City, Motown or simply the “D.” In a city, whose population is likely at 951,270, Detroit is also known for its liquor distribution during the prohibition in 1920.
Kansas City uses three types of funds namely proprietary, governmental, and fiduciary funds. Funds are groupings of related accounts used to keep up control over assets isolated for particular goals or exercises. Kansas, as other states and administrations, makes use of fund accounting to guarantee and show consistency with money related legal necessities. Kansas keeps two sorts of proprietary funds, internal service, and enterprise funds. The enterprise funds report the same
3. What are each of the financial statements commonly called in for-profit health care organizations and in not for-profit care organizations?
In this paper I will identify the four basic financial statements, discuss how they are interrelated with each other, and why they are useful to managers, investors, creditors, and employees.
Based on the income statement and balance sheet, we can get the cash flow statement for year 2002, 2003 and the first quarter of 2004. From the cash flow, it is obviously see that the main use of fund is for operations, materials purchasing, wages payment, interest payment etc. While the source of fund is from financing, bank loan and trade notes payables.
Question In some local government financial reports you will find activities such as solid waste disposal and sewage disposal accounted for as a part of the General Fund. In other reports apparently identical activities are accounted for as enterprise funds. Under what conditions would each treatment be proper?
‘Cash and cash equivalents’ include certain short-term investments and, in some cases, bank overdrafts. Like IFRS, ‘cash and cash equivalents’ include certain shortterm investments, although not necessarily the same short-term investments as under IFRS. Unlike IFRS, bank overdrafts are considered a form of short-term financing, with changes therein classified as financing activities. The statement of cash flows presents cash flows during the period, classified by operating, investing and financing activities. Like IFRS, the statement of cash flows presents cash flows during the period, classified by operating, investing and financing activities. The separate components of a single transaction are classified as operating, investing or financing. Unlike IFRS, cash receipts and payments with attributes of more than one class of cash flows are classified based on the predominant source of the cash flows unless the underlying transaction is accounted for as having different components. Cash flows from operating activities may be presented using either the direct method or the indirect method. If the direct method is used, then an entity presents a reconciliation of profit or loss to net cash flows from operating activities; however, in our experience practice varies regarding the measure of profit or loss used. Like IFRS, cash flows from operating activities may be presented using either the direct method or the indirect method. Like IFRS, if
Comprehensive Annual Financial Report (CAFR) is a report used by cities, and local governments to provide the public with their financial records each year, while adhering to government accounting standards board (GASB) guidelines. The report presents a comprehensive picture of the reporting entity’s financial condition, it provides how funds are spent and allocated throughout the year.
Financial Statements basically show the historical performance or record of the company at some previous point of time. By the time when financial statements are made public, changes are many economical areas such as market conditions, currency exchange rate and inflations can change the values of assets and liabilities. In this case there often exist discrepancies between book value of assets and their market values.