Concept introduction The key part of a business is the government. The governmental funds are termed as the general funds. Accounting and financial reporting becomes more important with increasing economy. There are two types of financial organizations in this category, governmental and not-for-profit entities. Budgeting helps to obtain optimal resource allocations to those entities and manage them efficiently. The way financial measurement focus and the economic resources measurement focus differ. The impact of these two focuses on the presentation of financial information. The reason that the addition of reporting under the economic resources focus provide added value to the understating of operation of government.

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Answer 1

Question

Chapter 15, Problem 1UTI

To determine

Concept introduction

The key part of a business is the government. The governmental funds are termed as the general funds. Accounting and financial reporting becomes more important with increasing economy. There are two types of financial organizations in this category, governmental and not-for-profit entities. Budgeting helps to obtain optimal resource allocations to those entities and manage them efficiently.

The way financial measurement focus and the economic resources measurement focus differ. The impact of these two focuses on the presentation of financial information. The reason that the addition of reporting under the economic resources focus provide added value to the understating of operation of government.

Expert Solution & Answer

Explanation of Solution

Consider the following transactions.

Salaries paid, $20,000.

For a governmental organization using the flow of the financial measurement focus, the salary is accounted as the expenditure. The entry of salary in journal is as follows.

Date	A/C Title	Post Ref.	Debit	Credit
	Expenditure		$20,000
	Cash			$20,000
	To record the payment of the salaries

In case of government side statement using the flow of economic measure focus, the salary is accounted as the expense and the journal entry will be as follows.

Date	A/C Title	Post Ref.	Debit	Credit
	Salary Expense		$20,000
	Cash			$20,000
	To record the payment of the salaries

The fundamental difference between both the focuses is that the financial resource measurement focus, only discuss the cash or asset that are expected to be converted to cash within the accounting period or in a specific period near the accounting period.

While the progress of economic resource measurement focus discusses all the assets that are accessible to the organization, not only in cash form but soon to be in cash asset as well.

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Students have asked these similar questions

Which of the following is true regarding the government-wide financial statements? a. The government-wide financial statements include the statement of net position and the statement of activities. b. The government-wide financial statements are to be prepared using the economic resources measurement focus and the accrual basis of accounting. c. The government-wide financial statements include information for governmental activities, business-type activities, the total primary government, and its component units. d. All of the above are true.

Which of the following has the least amount of official authority for the financial reporting of state and local governments? Choose the correct.a. GASB Technical Bulletins.b. GASB Statements of Governmental Accounting Standards.c. GASB Concepts Statements.d. GASB Implementation Guides.

What benefits are derived from including the management’s discussion and analysis in state and local governmental financial reports? What information is required to be included in the MD&A?

Answer 2

Question

Chapter 15, Problem 1UTI

To determine

Concept introduction

The key part of a business is the government. The governmental funds are termed as the general funds. Accounting and financial reporting becomes more important with increasing economy. There are two types of financial organizations in this category, governmental and not-for-profit entities. Budgeting helps to obtain optimal resource allocations to those entities and manage them efficiently.

The way financial measurement focus and the economic resources measurement focus differ. The impact of these two focuses on the presentation of financial information. The reason that the addition of reporting under the economic resources focus provide added value to the understating of operation of government.

Expert Solution & Answer

Explanation of Solution

Consider the following transactions.

Salaries paid, $20,000.

For a governmental organization using the flow of the financial measurement focus, the salary is accounted as the expenditure. The entry of salary in journal is as follows.

Date	A/C Title	Post Ref.	Debit	Credit
	Expenditure		$20,000
	Cash			$20,000
	To record the payment of the salaries

In case of government side statement using the flow of economic measure focus, the salary is accounted as the expense and the journal entry will be as follows.

Date	A/C Title	Post Ref.	Debit	Credit
	Salary Expense		$20,000
	Cash			$20,000
	To record the payment of the salaries

The fundamental difference between both the focuses is that the financial resource measurement focus, only discuss the cash or asset that are expected to be converted to cash within the accounting period or in a specific period near the accounting period.

While the progress of economic resource measurement focus discusses all the assets that are accessible to the organization, not only in cash form but soon to be in cash asset as well.

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Answer 3

Question

Chapter 15, Problem 1UTI

To determine

Concept introduction

The key part of a business is the government. The governmental funds are termed as the general funds. Accounting and financial reporting becomes more important with increasing economy. There are two types of financial organizations in this category, governmental and not-for-profit entities. Budgeting helps to obtain optimal resource allocations to those entities and manage them efficiently.

The way financial measurement focus and the economic resources measurement focus differ. The impact of these two focuses on the presentation of financial information. The reason that the addition of reporting under the economic resources focus provide added value to the understating of operation of government.

Expert Solution & Answer

Explanation of Solution

Consider the following transactions.

Salaries paid, $20,000.

For a governmental organization using the flow of the financial measurement focus, the salary is accounted as the expenditure. The entry of salary in journal is as follows.

Date	A/C Title	Post Ref.	Debit	Credit
	Expenditure		$20,000
	Cash			$20,000
	To record the payment of the salaries

In case of government side statement using the flow of economic measure focus, the salary is accounted as the expense and the journal entry will be as follows.

Date	A/C Title	Post Ref.	Debit	Credit
	Salary Expense		$20,000
	Cash			$20,000
	To record the payment of the salaries

The fundamental difference between both the focuses is that the financial resource measurement focus, only discuss the cash or asset that are expected to be converted to cash within the accounting period or in a specific period near the accounting period.

While the progress of economic resource measurement focus discusses all the assets that are accessible to the organization, not only in cash form but soon to be in cash asset as well.

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Answer 4

Question

Chapter 15, Problem 1UTI

To determine

Concept introduction

The key part of a business is the government. The governmental funds are termed as the general funds. Accounting and financial reporting becomes more important with increasing economy. There are two types of financial organizations in this category, governmental and not-for-profit entities. Budgeting helps to obtain optimal resource allocations to those entities and manage them efficiently.

The way financial measurement focus and the economic resources measurement focus differ. The impact of these two focuses on the presentation of financial information. The reason that the addition of reporting under the economic resources focus provide added value to the understating of operation of government.

Expert Solution & Answer

Explanation of Solution

Consider the following transactions.

Salaries paid, $20,000.

For a governmental organization using the flow of the financial measurement focus, the salary is accounted as the expenditure. The entry of salary in journal is as follows.

Date	A/C Title	Post Ref.	Debit	Credit
	Expenditure		$20,000
	Cash			$20,000
	To record the payment of the salaries

In case of government side statement using the flow of economic measure focus, the salary is accounted as the expense and the journal entry will be as follows.

Date	A/C Title	Post Ref.	Debit	Credit
	Salary Expense		$20,000
	Cash			$20,000
	To record the payment of the salaries

The fundamental difference between both the focuses is that the financial resource measurement focus, only discuss the cash or asset that are expected to be converted to cash within the accounting period or in a specific period near the accounting period.

While the progress of economic resource measurement focus discusses all the assets that are accessible to the organization, not only in cash form but soon to be in cash asset as well.

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Answer 5

Chapter 15, Problem 1UTI

To determine

Concept introduction

The key part of a business is the government. The governmental funds are termed as the general funds. Accounting and financial reporting becomes more important with increasing economy. There are two types of financial organizations in this category, governmental and not-for-profit entities. Budgeting helps to obtain optimal resource allocations to those entities and manage them efficiently.

The way financial measurement focus and the economic resources measurement focus differ. The impact of these two focuses on the presentation of financial information. The reason that the addition of reporting under the economic resources focus provide added value to the understating of operation of government.

Expert Solution & Answer

Explanation of Solution

Consider the following transactions.

Salaries paid, $20,000.

For a governmental organization using the flow of the financial measurement focus, the salary is accounted as the expenditure. The entry of salary in journal is as follows.

Date	A/C Title	Post Ref.	Debit	Credit
	Expenditure		$20,000
	Cash			$20,000
	To record the payment of the salaries

In case of government side statement using the flow of economic measure focus, the salary is accounted as the expense and the journal entry will be as follows.

Date	A/C Title	Post Ref.	Debit	Credit
	Salary Expense		$20,000
	Cash			$20,000
	To record the payment of the salaries

The fundamental difference between both the focuses is that the financial resource measurement focus, only discuss the cash or asset that are expected to be converted to cash within the accounting period or in a specific period near the accounting period.

While the progress of economic resource measurement focus discusses all the assets that are accessible to the organization, not only in cash form but soon to be in cash asset as well.

Answer 6

Chapter 15, Problem 1UTI

To determine

Concept introduction

The key part of a business is the government. The governmental funds are termed as the general funds. Accounting and financial reporting becomes more important with increasing economy. There are two types of financial organizations in this category, governmental and not-for-profit entities. Budgeting helps to obtain optimal resource allocations to those entities and manage them efficiently.

The way financial measurement focus and the economic resources measurement focus differ. The impact of these two focuses on the presentation of financial information. The reason that the addition of reporting under the economic resources focus provide added value to the understating of operation of government.

Expert Solution & Answer

Explanation of Solution

Consider the following transactions.

Salaries paid, $20,000.

For a governmental organization using the flow of the financial measurement focus, the salary is accounted as the expenditure. The entry of salary in journal is as follows.

Date	A/C Title	Post Ref.	Debit	Credit
	Expenditure		$20,000
	Cash			$20,000
	To record the payment of the salaries

In case of government side statement using the flow of economic measure focus, the salary is accounted as the expense and the journal entry will be as follows.

Date	A/C Title	Post Ref.	Debit	Credit
	Salary Expense		$20,000
	Cash			$20,000
	To record the payment of the salaries

The fundamental difference between both the focuses is that the financial resource measurement focus, only discuss the cash or asset that are expected to be converted to cash within the accounting period or in a specific period near the accounting period.

While the progress of economic resource measurement focus discusses all the assets that are accessible to the organization, not only in cash form but soon to be in cash asset as well.

Answer 7

Chapter 15, Problem 1UTI

To determine

Concept introduction

The key part of a business is the government. The governmental funds are termed as the general funds. Accounting and financial reporting becomes more important with increasing economy. There are two types of financial organizations in this category, governmental and not-for-profit entities. Budgeting helps to obtain optimal resource allocations to those entities and manage them efficiently.

The way financial measurement focus and the economic resources measurement focus differ. The impact of these two focuses on the presentation of financial information. The reason that the addition of reporting under the economic resources focus provide added value to the understating of operation of government.

Answer 8

Expert Solution & Answer

Explanation of Solution

Consider the following transactions.

Salaries paid, $20,000.

For a governmental organization using the flow of the financial measurement focus, the salary is accounted as the expenditure. The entry of salary in journal is as follows.

Date	A/C Title	Post Ref.	Debit	Credit
	Expenditure		$20,000
	Cash			$20,000
	To record the payment of the salaries

In case of government side statement using the flow of economic measure focus, the salary is accounted as the expense and the journal entry will be as follows.

Date	A/C Title	Post Ref.	Debit	Credit
	Salary Expense		$20,000
	Cash			$20,000
	To record the payment of the salaries

The fundamental difference between both the focuses is that the financial resource measurement focus, only discuss the cash or asset that are expected to be converted to cash within the accounting period or in a specific period near the accounting period.

While the progress of economic resource measurement focus discusses all the assets that are accessible to the organization, not only in cash form but soon to be in cash asset as well.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 15 - Prob. 1UTI Ch. 15 - Name three advantages gained by government...Ch. 15 - Why are budgets crucial in accounting for...Ch. 15 - Prob. 4UTI Ch. 15 - Prob. 5UTI Ch. 15 - Prob. 6UTI Ch. 15 - Prob. 7UTI Ch. 15 - Prob. 1.1E Ch. 15 - Prob. 1.2E Ch. 15 - Accounting for transactions. Select the best...

Explanation of Solution

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