help me identify wether the statement is true or false 12. Government assistance is action by government designed to provide an economicbenefit specific to an entity or range of entities qualifying under uncertain criteria.13. The availability of cash over a long term to meet financial commitment when theyfall due is called Liquidity.14. The availability of cash in the near future to cover currently maturing obligationsis called Solvency.15. Grants shall not be recognized on a cash basis as this is not consistent with GAAP.16. Adjusting events after the reporting period are those that provide evidence ofconditions that exist at the beginning of the reporting period.17. Residual value is the estimated net amount currently obtainable if the asset is at thebeginning of the useful life.18. Nonadjusting events after reporting period are those that are indicative ofconditions that arise on or before the end of reporting period.19. Events after the reporting period are also known as subsequent events.20.FIFO is in accordance with the ordinary merchandising procedure that the goodsare sold in the order they are purchased.

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12. Government assistance is action by government designed to provide an economic benefit specific to an entity or range of entities qualifying under uncertain criteria. 13. The availability of cash over a long term to meet financial commitment when they fall due is called Liquidity. 14. The availability of cash in the near future to cover currently maturing obligations is called Solvency. 15. Grants shall not be recognized on a cash basis as this is not consistent with GAAP.

12. Government assistance is action by government designed to provide an economic benefit specific to an entity or range of entities qualifying under uncertain criteria. 13. The availability of cash over a long term to meet financial commitment when they fall due is called Liquidity. 14. The availability of cash in the near future to cover currently maturing obligations is called Solvency. 15. Grants shall not be recognized on a cash basis as this is not consistent with GAAP.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6 Which of the following is a primary objective of financial reporting by state and local governments? Multiple Choice To provide information that can be used for capital allocation decisions made by external investors. To report on the legal requirements imposed on the government by its elected officials. To provide information that can be used to assess a government's accountability. To fulfill the government's statutory duty to report on cash received and cash disbursed.
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Which statement is not correct? A. The primary function of the financial system is to facilitate well the flow of funds in the economy, from those who have surplus funds but can’t utilize them to those who have deficiency of funds but have productive use for the funds. B. The president and the congress sets fiscal policies that are geared towards counteracting excessive spending and borrowing during economic boom and encouraging spending during economic depression. C. Financial Institutions like banks, insurance companies and mutual funds, are entities that receive funds from savers and invest the funds in securities issued by borrowers. D. The Philippines Stock Exchange is the primary capital market of the Philippines where the debt and equity securities of publicly listed corporations are traded. E. none of the above
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Which of the following is true regarding the government-wide financial statements?a. The government-wide financial statement includes a statement of cash flows.b. The government-wide financial statements are prepared on the financial resources measurement focus for governmental activities and the economic resources measurement focus for business-type activities.c. The government-wide financial statement includes a statement of net position.d. Infrastructure assets must be depreciated on the statement of activities.
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Most of the revenues obtained by most governments come from: Group of answer choices a Taxes b Sales of goods or services c Borrowing d All of these Which of the following entities must use fund accounting for external financial reporting purposes? Group of answer choices a Businesses b Nonprofit organizations c State and local governments d Federal government e All of these The FASAB establishes financial reporting standards for all governments. Group of answer choices a True b False
Please answer questions CASH BASIS VS ACCRUAL BASIS The IPSASB developed the IPSASs for government entities and departments who use the fund or cash accounting in recording and reporting transactions. Using the principles, concepts and definitions set out by the IPSASB explain in details the differences between Cash Basis and Accrual Basis (where applicable, use examples to support your answers), and the reasons why there is a move from the Cash Basis to the Accrual Basis.
Which of the following statements is false? Unmatured principal installments and accrued interest which is due shortly after year end are required to be reported as liabilities in the debt service fund at year end. An encumbrance in a capital project fund is created when the contract for the work is signed or issued. Premiums generated from the issuance of bonds for a capital projects fund are generally transferred to the Debt Service Fund. If taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are recognized as revenues of the Debt Service Fund.
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