Which of the following is NOT a reason that state and local government borrow? Group of answer choices to finance capital projects Purchase of expensive equiment to finance war to finance a land acquisition
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- Which one is among the non-government’s sources to finance a project. (a)Loan (b) grants (c) government bonds (d) government shares (e) none of theseAccording to PAS 20 Accounting for Government Grants and Disclosure of Government Assistance, which of the following is a government grant? a. Tax benefits Free technical or marketing advice Public improvements that benefit the entire community Provision of guarantees Noninterest-bearing loan from the government According to PAS 20 Accounting for Government Grants and Disclosure of Government Assistance, which of the following is not a government grant? Aid from the government to compensate for casualty losses already incurred. Cash received from the government to be used to acquire land. Government procurement policy that is responsible for a portion of the entity’s sales. Aid from the government to defray expenses which are yet to be incurred.How to record a trade-in? A.) Government Wide :Record at ticket price of the new asset B.) Fund statement: only the cash aspects of the transaction be recognized as expenditures C.) Losses and gains should be recognized on fund statements. D.) No losses and gains should be recognized on government wide financial statement
- Which governmental fund includes resources that are legally restricted so that the governmental entity must maintain the principal and can use only the earnings from the fund's resources to benefit the government's programs for all of its citizens? Group of answer choices a.) Capital projects fund b.) Permanent fund c.) Agency fundThe MARR value used for a public project is often based on the interest rate paid on bonds that are issued to raise funds for implementation of the project. O True O False‘’Private finance is not a panacea for the funding of all public projects’’ Discuss the statement above and identify the various types of project s which would be better value for money if funded by the public sector alone.
- The factors on which capital structure is dependent on Select one: a. Government Policy b. All the options c. Cost of capital. Requirement of investorsWhich of the following statement is true regarding the net approach of presentinggovernment grants?A. Government grant related to income has a deferred income from governmentgrant account.B. Government grant related to asset has a deferred income from government grantaccount.C. For grants related to asset, depreciation expense is higher as compared togross approach (unearned income from government grant approach).D. Government grant related to asset has to recognize an income from governmentgrant. From the below statements, which of them is a false statement regarding FSRSC?A. The chairman should be a senior practitioner of any scope of the accountancyprofession.B. FSRSC members serve without compensation for a term of three years, which canbe renewed for another three years.C. Not all members of FSRSC should be CPAs.D. FSRSC is the current standard setting-body in the Philippines. Its currentpronouncements are PASs. Which of the following statements is correct concerning the…Which of the following is an example of activities that are likely to be accounted for in a government's general fund? a. sales taxes collected by a state on behalf of counties within the state b. donations that must be kept intact, but whose income must be used to beautify parks c. property taxes levied and collected. d. electricity utilities of government that are financed by user charges
- Which TWO of the following statements are correct?i)Tax allowable depreciation is a relevant cash flow when evaluating borrowing to buy compared to leasing as a financing choiceii) Asset replacement decisions require relevant cash flows to be discounted by the after-tax cost of debtiii) If capital is rationed, divisible investment projects can be ranked by the profitability index when determining the optimum investment scheduleiv) Government restrictions on bank lending are associated with hard capital rationing a. ii & iii b. i & ii c. i & iii d. iii & iv1. What is the accounting difference between using the modified approach for infrastructure assets and depreciating infrastructure assets? Under the modified approach, what happens if infrastructure assets are not maintained at or above the established condition level? 2. What is a special assessment? How does funding for a special assessment capital improvement differ from other capital improvements in a local government?Which of the following is true regarding government grant related to asset? *a. Depreciation is higher and net income lower if the grant is recorded as deferred revenueb. Depreciation is higher and net income lower if the grant is an adjustment to the assetc. Depreciation is higher if the grant is a deferred revenue and net income is not affectedd. Depreciation is higher if the grant is adjustment of the asset
