Accounting and financial reporting for state and local governments use, in different places, either the economic resources measurement focus and the accrual basis of accounting or the current financial resources measurement focus and the modified accrual basis of accounting. Discuss the differences in measurement focus and basis of accounting related to (a) the conceptual differences, (b) differences in revenue recognition, (c) differences in expense/expenditure recognition, (d) differences in recognition of fixed assets, and (e) differences in the recording of long-term debt.
The differences in measurement focus and basis of accounting related:
What is Accrual Accounting?Accrual accounting is the process of recording the transactions whenever the expenses or revenues are incurred. This helps the employees not to miss the transactions that occur daily. The revenue recognition will be appropriate under this method.
(A) Differences in conceptual differences :
The economic resources measurement focus measures all economic resources, including capital assets and long-term debt.
The current financial resources measurement focus measures financial resources and does not recognize long-term assets and liabilities. The accrual basis of accounting recognizes revenues When earned and expenses when incurred. (when goods or services are used).
The modified accrual basis of Accounting recognizes revenues when measurable and available to finance Expenditures of the current period. The modified accrual basis of accounting recognizes expenditures generally when the fund liability is incurred except for payments of interest on long-term debt Which are recognized when due.
(B) Differences in Revenue Recognition:
Under accrual accounting revenues based on exchange transactions are recognized when earned. Revenues based on non-exchange transactions are recognized according the provisions of GASB Statement 33.
Under modified accrual accounting, revenue recognition is modified to require that the amount be measurable (determinable) and available to finance expenditures of the current period.
(C) Differences in Expense/Expenditure Recognition:
Under accrual accounting, expenses are recognized when incurred. Expenses are often matched with revenues those expenses generate, in the case of exchange transactions. Accruals are required for interest and other expenses, regardless of when cash is to be transferred.
Under modified accrual accounting, expenditures (not expenses) are recorded generally when goods or services are received.
(D) Differences in recognition of fixed assets:
Under the economic resources measurement focus and accrual accounting, fixed assets are capitalized and depreciated .
Under the current financial resources measurement focus and modified accrual accounting, fixed assets are not capitalized or depreciated; rather fixed assets are charged to expenditures when received.
(E) Differences in the recording of long-term debt:
Under the economic resources measurement focus and accrual accounting, long-term debt is recorded as a liability; repayments are recorded as a reduction of that liability.
Under the current financial resources measurement focus and modified accrual accounting, long-term debt is not recorded as a liability.
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If a firm issues debt, shareholders will assume the firm's common stock is Blank______, and/but if a firm issues equity, shareholders will assume the firm's common stock is Blank______. Multiple choice question. undervalued; undervalued overvalued; overvalued undervalued; overvalued overvalued; undervalued
If a firm issues debt, shareholders will assume the firm's common stock is Blank undervalued and/but if a firm issues equity, shareholders will assume the firm's common stock is Blank overvalued.
What is the impact on the present value of distress costs as more debt is added?Higher debt levels lessen the amount of discretionary financial flows that management controls, which lessens the waste brought on by managerial laziness or perquisite spending. Therefore, larger debt levels increase the value of the company. The present value of the anticipated costs of financial difficulty reduces the value of the leveraged firm.Which of the following are generally true about the cost of equity and the cost of debt?Leverage increases the cost of debt.Leverage has the potential to raise the cost of equity. Generally speaking, the cost of debt is less than the cost of equity.Why is cost of equity higher than cost of debt?Although equity does not require repayment, it typically costs more than borrowed capital because interest payments are tax deductible. Stock often offers a better rate of return than debt since the cost of equity is higher.Learn more about shareholders here:
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Surveys should be worded so that participants will?
Surveys should have a word organization such that participants can:
respond accurately to each question within a few secondsread each question in 10 to 20 secondsHow should surveys be worded?Surveys should be worded such that the participant understands what is being asked of them and so respond accurately.
The questions should also be brief and concise to allow for them to be read in 10 to 20 seconds.
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One of the basic ways in which services differ from tangible goods is that the service and the deliverer of it are Blank______ from each other.
One of the basic ways in which services differ from tangible goods is that the service and the deliverer of it are Blank separable from each other.
Any item that can be touched, moved, observed, weighed, measured, or picked up qualifies as a tangible good. Examples of tangible things include cars, printed books, clothing, tools, flowers, furniture, and DVDs, to name just a few.Products that can be seen, touched, and felt are referred to as tangible things. Solutions that give advantages like ease, efficiency, or knowledge but no physical goods are known as intangible products or services.In contrast to products, which we can physically touch or handle, services are the non-physical, intangible components of our economy. The majority of the economies of the wealthy countries are based on services like banking, education, healthcare, and transportation. They also represent the bulk of the economies of the developing countries.Thus this is the answer.
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The board of directors for TundraPro, Inc., is searching for a new CEO. The firm is in need of new direction after suffering several years of declining performance and increasingly demoralized management and employees. Under these circumstances, TundraPro would benefit from a(n):
A) High levels of honesty, trustworthiness, and integrity and, B) High emotional intelligence.
What do managers who lack motivation do?A person's confidence and hope can be diminished or their optimism can be discouraged and disheartened, according to the definition of demoralization. This will make the person or people lose hope for the future. Common management misbehaviors result from:
MicromanagementAbdicating when parachuting in and outDividing them into opposing camps and blamingThe repercussions of harmless errorsThreats of employment lossThe flavor of the monthAssuming perfectionBullyingGood as your last gameInconsistency.How can one help against demoralization?One is to refrain from concentrating on the bad things.
Another option is to record one's self-talk in a journal. Self-talk is essential since, as a human, it is only natural to have an interior monologue or to talk to oneself continually. When one is positively talking to oneself, one can also positively see nice aspects in his or her life and about himself/herself.
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On an indirect method statement of cash flows, a gain on the sale of plant assets is?
Deducted from net income in the operating activities section is the correct answer.
Under the Indirect method of cash flow statement, The companies must adjust net income to convert certain items to a cash basis.
The reconciliation starts with net income and converts it to net cash provided/ used by operating activities.
Net Income + Non-cash expenses + Loss on the sale of plant assets - Gain on the sale of plant assets - Increase in current asset account + Decrease in current asset account + Increase in current liability account - Decrease in a current liability account.
In this question, If a gain on the sale of plant assets occurs, The company deducts the gain from net income to determine the net cash provided by operating activities.
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Which factors contribute to the economic growth of newly industrialized countries? (Check all that apply.)
Factors contributing to the economic growth of newly industrialized countries are options (a),(b), and(c) i.e, orientation toward exports, political stability, and encouragement of self-employment.
What are newly industrialized countries?The term "newly industrialized country" (NIC) refers to a nation whose national economy has recently shifted from being based mostly on agriculture to being focused primarily on goods-producing industries, such as manufacturing, construction, and mining.
Enhanced economic freedom, increased personal freedom, a shift from agricultural to manufacturing, the presence of major national firms, significant foreign direct investment, and rapid urban center growth are some characteristics that are frequently observed in NICs.
The complete question is:
which factors contribute to the economic growth of newly industrialized countries? check all that apply.
a. orientation toward exports
b. political stability
c. encouragement of self-employment
d. low rates of domestic savings
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A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n) indirect material. period cost. miscellaneous expense. direct material.
A manufacturing process requires small amounts of glue in production process is classified as indirect material.
What is indirect material?Indirect materials are those materials that are not readily traceable or identified with a job.
It is to be noted that indirect materials forms part of production processes whereas are not included in final product.
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Examples of barriers to entry include Group of answer choices Price taking. Patents. None of the Answers are Correct. Standardized products. Economic profits.
Examples of barriers to entry include Patents.
What Are Barriers to Entry?A term used in economics and business to describe variables that can deter or make it difficult for newcomers to enter a market or industry sector and so limit competition is "barriers to entry." These might include prohibitive startup fees, bureaucratic roadblocks, or other barriers that make it difficult for new rivals to enter a market. Existing businesses win from entrance barriers because they preserve their market share and capacity to make money.
There are four main types of barriers to entry:
legal (patents/licenses), technical (high start-up costs/monopoly/technical knowledge), strategic (predatory pricing/first mover), brand loyalty.Most people think of patents as temporary entry barriers put in place by the government. Patent protection, however, typically restricts access rather than blocking it. A business may enter a market that is protected as long as its product complies with a minimum standard of novelty and does not violate any active patents.
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What measures the market value of all final goods and services produced within a country in a given time period
GDP measures the market value of all final goods and services produced within a country in a given time period.
Gross National Product (GNP) is a measure of the value of all goods and services produced by a country's residents and businesses. It estimates the value of final products and services produced by the people of the country, regardless of where they are produced.
GDP measures the monetary value of final goods and services produced in a country during a specific time period (for example, quarter or year), that is, those purchased by the end consumer. It counts all the electricity generated within the boundaries of the country.
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Which investment has the least liquidity? mutual fund house checking account small business
Answer:
I think it's D
Explanation:
A small business.
Small business has the least liquidity. Hence, the correct option is small business.
What is Liquidity?Liquidity is the term which tells us about the time duration needed to convert the investment into cash as quickly as possible.
The small business is not a type of investment. The investor can invest in the corporation, but the investor can get their money after the dissolution of the company and maybe getting the money back after selling the shares of the corporation which takes time. It is the least liquid.
The investment which has high liquidity, the investor prefers those investment. The investment which has the least liquidity, the investor does not prefer those investment. The investor invest in that type of investment which is providing high liquidity. So that in case of emergency, the investor easily sale his investment and get the money
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Which of the following retirement vehicles provide income tax-advantages? (check all that apply)
A. 403(b)
B. Mutual Fund
C. 401(k)
D. Roth IRA
E. IRA
The 403(b) and 401(k) are the the retirement vehicles that provide income tax-advantages.
What is an income tax-advantages?These advantage means the item one can subtract from your taxable income to lower the amount of taxes you owe.
Hence, the 403(b) and 401(k) are the the retirement vehicles that provide income tax-advantages.
Therefore, the Option A, C is correct.
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The adjusting entry to record the allowance for doubtful accounts causes total ______. (Check all that apply.) Multiple select question. stockholders' equity to decrease assets to decrease assets to increase liabilities to increase liabilities to decrease stockholders' equity to increase
Assets to decreases and stockholders' equity to decrease due to the adjusting entry used to record the allowance for doubtful accounts.
Allowance for doubtful accounts also known as contra account nets against the total receivables shown on the balance sheet to only show the amounts anticipated to be paid. The percentage of accounts receivable that are anticipated to be uncollectible is estimated by the allowance for doubtful accounts.
The danger of not being paid is always inherent in a credit-based transaction, regardless of the corporate rules and procedures for credit collections. As a result, a business must recognize this risk by creating an allowance for doubtful accounts and offsetting bad debt expenditure.
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describe your biggest achievement when you worked in team
A governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances reported of $30 million, including capital outlay expenditures of $9 million. Capital assets for that government cost $90 million, including land of $10 million. Depreciable assets are amortized over 20 years, on average. The reconciliation from governmental changes in fund balances to governmental activities changes in would reflect a(an):
The reconciliation from governmental changes in fund balances to governmental activities changes in would reflect a Increase of $5 million.
What are the 5 governmental funds?General, special revenue, capital projects, debt service, and permanent funds are the five categories into which the government divides its funds.What is a fund and how is it used in governmental accounting?A fund is an accounting entity having a self-balancing set of accounts used to record financial resources and liabilities as well as operating operations and which is segregated in order to conduct particular activities or meet specific objectives.
According to the question:
Depreciation expense = (90m-10m)/20.
= $4 millions.
= 9 million - 4million.
= Increase of $5 million.
Hence, Reconciliation from governmental changes in fund balances to governmental activities changes in net assets would reflect an (an) increase of $5 million.
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Which statement below best answers the economic question "How to produce"?
An artisan crafts wooden figurines, toys, and games.
An artisan sells their products at art shows, online, and by word of mouth.
An artisan uses local wood from a sustainable tree farm to make products.
An artist sells their products for prices ranging between $20 and $500.
Answer: An artisan uses local wood from a sustainable tree farm to make products.
Explanation:
Answer:
An artisan uses local wood from a sustainable tree farm to make products.
Explanation:
I took the test and got it right :)
Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, Gideon Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. On July 10, Gideon received a check for the full amount of $2,000 from Hopkins. The entry or entries Gideon makes to record the recovery of the bad debt is: Multiple Choi
A. Hopkins, accounts Receivables $2,000 (debit)
⇒Bad debts expenditure (credit) $2,000
⇒Cash $2,000 (debit)
⇒ Hopkins, account Receivables $2,000 (credit)
Allowance methodAt the end of each month, uncollectible accounts are estimated using the allowance technique of accounting for bad debts. Ensures that receivables are shown on the balance sheet at their cash (net) realizable value and better aligns expenses and revenues on the income statement.With the allowance technique, a reserve is set up for anticipated future bad debts. The reserve is calculated as a percentage of the sales made during the reporting period, with the potential for adjustments for the risk related to certain customers.Why do people utilize the allowance method?How much cash a company should set aside for potential future bad or unrecoverable customer debt is determined using the allowance technique. It takes into account the price of the losses a business anticipates from giving customers credit.
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While explaining the prospects of selling related to creating value, a seller refers to the collection of buyer-specific benefits as the _____.
While explaining the prospects of selling related to creating value, a seller refers to the collection of buyer-specific benefits as the customer value proportion.
What is a customer value proposition?A customer value proposition serves as the statement that can be utilized in convincing a customer to purchase its products.
In this case, While explaining the prospects of selling related to creating value, a seller refers to the collection of buyer-specific benefits as the customer value proportion.
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In 2008, Federal Reserve Chairman Ben Bernanke made credit more available within the U.S. financial system by loaning money to banks. This action was to encourage a(n) (4 points) Group of answer choices contraction expansion peak trough
The action will encourage expansion.
When the financial crisis came, people bought billions of dollars in equities, mortgage instruments, and bonds straight from the United States Treasury.
Expansionary policy aims to stimulate company investment and consumer spending by infusing money into the economy, either directly through government deficit spending or through increased lending to firms and consumers.
Tax cuts and the increased government expenditure are the two primary elements of the expansionary fiscal policy. Both of these program aim to boost aggregate demand while adding to deficits or reducing budget surpluses.
Therefore, the answer is expansion.
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Which of the following is a feasible explanation for an unfavorable direct materials quantity variance? A machine that was out of alignment caused several units of product to be scrapped Higher-paid experienced factory workers were assigned to the product Purchased a higher-quality material than specified in the standard Purchased more materials than specified because the larger quantity resulted in a price discount
A machine that was out of alignment caused several units of product to be scrapped.
What does an unfavorable materials quantity variance indicate?An actual vs expected direct material variance contrasts the two types of materials utilized in the production of a product. When you use more material than you expected, this is referred to as an unfavorable materials quantity variance. Utilizing less material than anticipated is advantageous.
One of the cost accounting metrics that firms evaluate to gauge manufacturing efficiency is the variance in material quantities. Monitoring variations enables producers to spot problems as they arise and fix them. It also sharpens the accuracy of future production budgets.
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Jax manages a team of ten telemarketers. The composition of his team is as follows: three people are brand new; five have been at the company for two years; two have been there five years and are top sales earners. With his new members, Jax provides daily direction and support. His top earners run with the goals that they set, planning how to reach them on their own and reporting back to Jax when they reach their targets. The other five team members Jax coaches and trains every two months. What leadership style is Jax implementing with his team
SITUATIONAL LEADERSHIP style is Jax implementing with his team.
What is Situational Leadership?Situational leadership means adapting your management style to each unique situation or task to meet the needs of the team or team members. Ken Blanchard and Paul Hersey developed the Situational Leadership Theory in 1969. They believe that there is no “one size fits all” leadership style.
The situational theory of leadership is a form of leadership whereby the leader makes use of different leadership styles in accordance to the situation and the team members level of development. The situational theory of leadership is an effective method of leadership because it relates and adapts to the needs of the team members and brings about the achievement of organizational goals and objectives.
The main function that is demanded of the leader is for him or her to lead and make decisions. The leader should also encourage and motivate the team by giving instructions that are clear and concise.
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In San Francisco there are many restaurants that specialize in a wide variety of cuisines. Patronage at these restaurants is influenced by factors such as tastes, price, and location. This market is A) perfectly competitive. B) monopolist
In San Francisco, there are many restaurants that specialize in a wide variety of cuisines. Patronage at these restaurants is influenced by factors such as tastes, price, and location. This market is option (b) i.e, monopolistically competitive.
What is monopolistically competitive?
An industry with a lot of companies offering similar (but not identical) replacement goods or services is known as one with monopolistic competition. In a monopolistic competitive industry, there are few barriers to entry and exit, and no firm's decisions directly affect those of its rivals.
Monopolistic competition is characterized by a number of features.
slight variations in the goods and services,Free access to the market and exitmany businessesProfits from incomplete consumer knowledgeConsumer electronics, apparel, restaurants, and hair salons are a few examples of industries with monopolistic competition. Each business delivers goods that are comparable to those of other businesses in the same sector. They can, however, set themselves out through branding and marketing.
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When the grocery store orders a large shipment of chocolate candy just before Valentine's Day, this type of inventory is typically called:
When the grocery store orders a large shipment of chocolate candy just before Valentine's Day, this type of inventory is typically called Anticipatory inventory.
What is Anticipatory inventory?Anticipatory inventory is the stock that is continued to accord to the normal buyer interest. It is very like wellbeing stock however it contrasts as in this stock is generally kept occasionally when the interest for items can shift enormously.This inventory enables a company to adapt to changes in customer demand.It enables the company to constantly provide customer service.When demand fluctuates, it enables the company to grow its operations.This inventory type may resemble safety stock quite a bit. It varies from safety stock, though, in that it is kept on hand by the business to handle demand swings. This change reflects the anticipation of rising demand in the near future.If a scarcity or price increase is anticipated soon, businesses might store more inventory.
Hence, this kind of inventory is frequently referred to as anticipatory inventory, such as when the grocery store orders a huge supply of chocolate candies right before Valentine's Day.
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_____ move resources, goods, services, and skills across national boundaries without regard to the country in which they are headquartered. Group of answer choices International monopolies Cartels Oligopolies Borderless corporations Multinational corporations
Multinational corporations move resources, goods, services, and skills across national boundaries without regard to the country in which they are headquartered.
Multinational corporations:
What do multinational firms mean?
Any company that is registered and conducts business in more than one nation at once is referred to as a multinational corporation (MNC), sometimes known as a transnational corporation. The corporation typically operates totally or partially owned subsidiaries in other nations while having its headquarters in one particular nation.
MNCs provide their goods and services in many different nations, necessitating global management. Multinational companies have many assets, a high rate of turnover, and aggressive marketing. The MNCs in India include LTI, TCS, Tech Mahindra, Deloitte, and Capgemini, to name a few.
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An indirect measure of risk that tells us how much a firm earned for each dollar invested by its owners is called
An indirect measure of risk that tells us how much a firm earned for each dollar invested by its owners is called Return on Equity.
What is Return on Equity?Return on equity is what shows how performing company is generating returns on the investment it received from its shareholders.
In other words, it is a measure of the profitability of a business as it relates to capital invested in the business.
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Problems determining authority and responsibility, poor response time, and poor integration are disadvantages of: Group of answer choices The Informal Organization The Formal Organization The Matrix Organization The Project Organization The Functional Organization
Problems determining authority and responsibility, poor response time, and poor integration are disadvantages of The Functional Organization.
The Functional Organization is a type of organizational system which operates according to the principle of specialization in role and function.
In project management, many types of organizations exist and are chosen. The Functional Organization works by division into departments and sub-sections where the role and function of the specific department stand defined and stipulated. A functional manager has a group of employees working under their supervision and authority. Problems determining authority and responsibility, poor response time, and poor integration are more than likely and entirely possible to arise in this organizational system.Therefore, problems determining authority and responsibility, poor response time, and poor integration are disadvantages of The Functional Organization.
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HELPPPPPPP
2. The components of marginal revenue
Yakov's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Yakov produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Yakov faces. As you can see, to sell the additional engine, Yakov must lower his price from $80,000 to $60,000 per fire engine. Note that while Yakov gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price.
Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $60,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $60,000.
The information given regarding the marginal revenue is illustrated below.
How to illustrate the information?Marginal revenue is the increase in revenue that results from the sale of one additional unit of output.
While marginal revenue can remain constant over a certain level of output, it follows from the law of diminishing returns and will slow down when the output level increases.
Here, the price effect dominates the quantity effect so he cannot increase the production from 7 units to 8 units.
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which is the direction or vision of an organization that supports day-to-day interaction with customers
which is the direction or vision of an organization that supports day-to-day interaction with customers is customer-centric organization.
Customer-centric businesses go out of their way to understand their clients and then act on that understanding by cultivating a workplace culture that encourages employees to make the best choices for both the client and the business at the same time.
Customer centricity is the capacity of individuals within a business to comprehend the circumstances, viewpoints, and expectations of customers.
It repositioned itself as a client-centric business rather than highlighting its emphasis on the creation of new services at all costs and without explicit customer involvement.
Zappos is a great illustration of how a company may succeed with a model that prioritizes customer satisfaction and service.
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Swifty Company's accounting records show the following at the year ending on December 31, 2022: Purchase Discounts $ 11300 Freight - In 16000 Purchases 401100 Beginning Inventory 46200 Ending Inventory 57900 Purchase Returns 13500 Using the periodic system, the cost of goods purchased is
Cost of goods sold (Periodic System) = Beginning inventory + (Purchases, net of returns and allowances, and purchase discounts) + freight in − Ending inventory .
COGS = Cost of goods sold
COGS = 46200+(401100-13500-11300)+16000-57900
COGS = 380600
The total sum that your company spent on expenses directly associated with the selling of goods is known as the cost of goods sold. Depending on the nature of your firm, this could also include raw materials, packaging, direct labor involved in making or selling the product, and items bought for resale.
First In First Out (FIFO), Last In First Out (LIFO), and the Average Cost Method are the three techniques that a business might employ when tracking the amount of inventory sold over a given time period.
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A monopoly compare to pure competition has ____________ forces of increasing and diminishing returns to determine cost relationships. A monopoly compare to pure competition has ____________ forces of increasing and diminishing returns to determine cost relationships.
A monopoly compare to pure competition has the same forces of increasing and diminishing returns to determine cost relationships.
What is Monopolistic Competition?Monopolistic competition is defined as a structure of a common market were organizations have different competitors, but they sell different types of product in the market.
Different kind of small businesses work under the state of monopolistic competition, which includes operated high-street stores, restaurants. and independently owned. for restaurants, each one has an element of uniqueness, and offers something that is not the same, but all are necessarily competing for the same customers.
Monopolistic competition can also be called a competition that is imperfect in a way that, different producers sell products that are different from one another.
What is Pure Competition ?Pure competition is a market structure that involves different manufacturers providing customers with similar products. A large number of homogenous goods, many sellers that can easily enter the market, and customers who have full information about the companies and their products create a perfect environment for this market model.
In conclusion, A monopoly has the same factors of increasing and diminishing returns that determine cost relationships as pure competition.
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