The City of Bagranoff holds $90,000 in cash that will be used to make a bond payment when the debt comes due early next year. The assistant treasurer had made that decision. However, just before the end of the current year, the city council formally approved using this money in this way. The city council has been designated as the highest level of decision-making authority for this government. What impact does the council’s action have on the reporting of fund financial statements? Choose the correct.a. Fund balance—unassigned goes down and fund balance—restricted goes up.b. Fund balance—assigned goes down and fund balance—committed goes up.c. Fund balance—unassigned goes down and fund balance—assigned goes up.d. Fund balance—assigned goes down and fund balance—restricted goes up.

The City of Bagranoff holds $90,000 in cash that will be used to make a bond payment when the debt comes due early next year. The assistant treasurer had made that decision. However, just before the end of the current year, the city council formally approved using this money in this way. The city council has been designated as the highest level of decision-making authority for this government. What impact does the council’s action have on the reporting of fund financial statements? Choose the correct.a. Fund balance—unassigned goes down and fund balance—restricted goes up.b. Fund balance—assigned goes down and fund balance—committed goes up.c. Fund balance—unassigned goes down and fund balance—assigned goes up.d. Fund balance—assigned goes down and fund balance—restricted goes up.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 78IIP

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The City of Bagranoff holds $90,000 in cash that will be used to make a bond payment when the debt comes due early next year. The assistant treasurer had made that decision. However, just before the end of the current year, the city council formally approved using this money in this way. The city council has been designated as the highest level of decision-making authority for this government. What impact does the council’s action have on the reporting of fund financial statements? Fund balance—unassigned goes down and fund balance—restricted goes up. Fund balance—assigned goes down and fund balance—committed goes up. Fund balance—unassigned goes down and fund balance—assigned goes up. Fund balance—assigned goes down and fund balance—restricted goes up.
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A city maintains an internal audit department and accounts for it in its general fund. In the coming year, the department will purchase $300,000 of computer and other office equipment, all of which will be paid for out of current resources (i.e., not with debt).City officials have given top priority to reducing general fund expenditures. To that end, the city comptroller has proposed accounting for the internal audit department in an internal service fund rather than in the general fund. As envisioned by the comptroller, the audit department would bill each of the units (all of which are accounted for in the general fund) for each audit performed. Fees would be established so that they would cover all audit department costs. The fund would be established by a transfer of $300,000 from the general fund to cover the cost of the new equipment.The city estimates that for the coming year the audit department's operating costs, excluding any costs relating to the new equipment, will be…
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