Answered: Explain the accounting for funds…

Explain the accounting for funds received by an organization acting as an agent, a trustee, or an intermediary, rather than as a donor or donee. What might be the reasoning for the differences?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 9GI: Give an example and explanation for each of the following differences between when revenues are...

See similar textbooks

Related questions

Q: The work finance is defined as, except: a. The money management and the process of acquiring…

A: We know, the finance manager has the following functions:- I) Financing Decision II) Investing…

Q: The modified accrual foundation of accounting is used by which fund category? Under the modified…

A: Introduction: Another accounting approach that combines accumulation premise bookkeeping and cash…

Q: Please answer questions CASH BASIS VS ACCRUAL BASIS The IPSASB developed the IPSASs for…

A: Companies could use one of two accounting techniques: cash basis or accrual basis. The phrase "time…

Q: What is the reason that fund accounting has traditionally been a prominent factor in the internal…

A: Fund refers to a self-balancing set of accounts including cash as well as other financial resources,…

Q: Which of the following statement is true about financial management? a. Financial Management deals…

A: Financial management helps the company to identify different types of funds, so that company can…

Q: fill in the blanks Revenues are monies an organization received in exchange for ________ and…

A: SOLUTION REVENUE = PRICE OF GOODS & SERVICES * NO OF UNITS SOLD OR NO OF CUSTOMERS.

Q: What is the purpose of a special revenue fund? Choose the correct.a. To account for revenues legally…

A: Special revenue fund refers to fund used within governmental body to record proceeds from certain…

Q: Explain your analysis, why organization having importance of following functions of financial…

A: Acquisition of funds or procurement of funds is identified with the choices of the capital structure…

Q: What are the two different ways that supplies and prepaid items can be recorded on fund financial…

A: There are two different methods to record supplies and prepaid items on fund financial statements:…

Q: Explain the distinction/s between custodial funds and trust funds. What financial statements…

Q: Which of the following is not an economic purpose of financial instruments? a Allows transfer of…

A: b Permit transfer of fund that allows sharing of inherent risk associated with the cash flows coming…

Q: What are the characteristic of a proprietary fund? How do internal service funds and enterprise…

A: The question is based on the concept of Accounting theory

Q: Which fund category uses modified accrual basis of accounting? What are the recognition rules of…

A: The government uses a different way to report their financial statements than the private sector…

Q: Using information in the relevant IPSASs, give a comprehensive definition (with examples) of revenue…

A: Cash flow statement Cash flow statement which are used to assess the information of total net…

Q: Which of the following is NOT a function of financial management: Select one: O a. Allocation of…

A: There are various functions of financial management

Q: Is there a connection between regulatory accounting and enterprise fund accounting

A: This is a set of accounting rules that only apply to a particular firm known as the RAP. Federal…

Q: Which of the following accounts are used as income statement-like accounts in investment trust…

A: An income statement is one of the important financial statements of the company. It can be defined…

Q: Accounting for permanent funds closely resembles the accounting for a. internal service funds. b.…

A: Fund: Funds refer to an amount of money which is set aside or saved by individuals, government, and…

Q: A fee charged to compensate sales professionals for the marketing and advertising of funds share is…

A: Annual management fees is the total fees charged by fund managers to the investors for the…

Q: By selecting one among the Balance Sheet, Income Statement, Cost of Sales Table, Fund Flow Statement…

A: Financial statements are the reports or documents that are being prepared by the management of the…

Q: Which of the following is NOT a function of financial management: Select one: O a. Financial…

A: Financial management is the process procuring the funds at low cost and effectively utilizing the…

Q: Explain the flow of funds within an organization

A: Flow of Funds refers to the flow of money in the business organization. Finance is the blood of the…

Q: Discuss the measurement focus used in governmental accounting and the financial transactions…

A: In government accounting, cash basis accounting is followed. The objective of Government accounting…

Q: ör Fålšé questions E. Resources flowing into and out of a fund means that the fund is an accounting…

A: An individual, association, or organization that engages in economic activities and controls…

Q: flow of funds within an organization work

A: Funds mean the amount of money available to meet the short-term or long-term requirements of an…

Q: Why do we need to study the flow of funds within an organization?

A: The aggregate of all cash flows from and into various financial assets is known as fund flow. the…

Q: Explain your analysis, why organization having importance of following functions of financial…

A: At the point when we characterize the jobs of a finance head area head, by and large, it very well…

Q: What is the purpose of enterprise funds? Choose the correct.a. To account for operations that…

A: The correct answer is Option (d).

Q: when resources should be reported in the financial statements of funds is a basis of accounting…

A: According to the cut off procedures in accounting, the transactions of one period is to be separated…

Q: What is the person or institution that invest or make fund available?

A: An investor is a person or other entity (such as a company or mutual fund) who invests money in the…

Q: True or False questions G. The issue of what resources should be reported in the financial…

A: Financial statements comprise an income statement and a position statement. The income statement is…

Q: Agency Funds account for financial resources for which government is acting as an owner. True False

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following identifies the reason that we need reconciliations between governmental funds…

A: To identifies the reason that we need reconciliations between governmental funds and government-wide…

Q: Explain the modified accrual foundation for accounting. In the context of governmental funds, why…

A: The modified accrual foundation of accounting is as follows: An accounting method known as the…

Concept explainers

Flow of Funds

The flow of funds is the financial accounts of the nation, which monitor and control the cash flow among various sectors or industries, or markets. Central banks use these flow of funds statements to acquire macroeconomic data, to publish cash inflow and cash outflow statements of the nation. This flow of funds system is utilized to identify economic activity and changes in the economy. It is used by Federal Reserve to determine the Gross Domestic Product (GDP) of the nation and to implement monetary policy and fiscal policies.

Question

Explain the accounting for funds received by an organization acting as an agent, a trustee, or an intermediary, rather than as a donor or donee. What might be the reasoning for the differences?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Describe how monies received by an organization functioning as an agent, trustee, or intermediary, rather than as a donor or donee, are accounted for. What may be the rationale for the discrepancies?
How does using the accounting support fee to fund the FASB create more independence than using donations?
Which of the following is an example of an interactivity transaction?a. Money is transferred from the general fund to the debt service fund.b. Money is transferred from the capital projects fund to the general fund.c. Money is transferred from the special revenue fund to the debt service fund.d. Money is transferred from the general fund to the enterprise fund.
How should a nongovernmental, not-for-profit organization report contributions without donor‘s restriction in its statement of cash flows A.) Operating activity inflow. B.) Investing activity inflow. C.) Financing activity inflow. D.) As a noncash transaction.
It is important to understand the difference between custodial and trust funds. How many financial statements have been produced for each of the organizations mentioned above?
Which of the following is an example of an interactivity transaction? Money is transferred from the general fund to the debt service fund. Money is transferred from the capital projects fund to the general fund. Money is transferred from the special revenue fund to the debt service fund. Money is transferred from the general fund to the enterprise fund.
V6. What is the entity in charge of creating and ensuring accounting standards for government organizations? Do you understand that government accounting standards offer some benefit to users of financial statements? Explain Distingue entre fondos gubernamentales y fondos de propietario Name and explain the two types of owner funds.
A board sets aside resources to earn investment income to support general operations. Would the resources set aside be recorded in a fund with donor restrictions or a fund without donor restrictions? Would the earnings be recorded in a fund with donor restrictions or a fund without donor restrictions?
The modified accrual foundation of accounting is used by which fund category? Under the modified accrual basis of accounting, what are the revenue and expenditures recognition rules?
In Governmental and Nonprofit Accounting, the use of fund accounting is a unique feature, allowing for the segregation of resources into distinct categories based on their source, restrictions, and purpose. True false
A board sets aside resources to earn investment income to support general operations. Would the resrources set aside be recorded in a fund with donor restrictions or a fund without donor restrictions? Would the earnings be recorded in a fund with donor restrictions or a fund without donor restrictions?
Explain the modified accrual foundation for accounting. In the context of governmental funds, why does it appear in the financial reports?