A school district prepares its budget on a cash basis. It is contemplating the c

Question

A school district prepares its budget on a cash basis. It is contemplating the changes or actions that follow. For each, indicate the impact that the change would have (1) on year-ending June 30, 2017 general fund expenditures or transfers and (2) on year ending June 30, 2017, government -wide expenses (e.g., “increase expenditures by $x” or “no impact”). Provide a brief explanation of your response, indicating that you are aware of the relevant financial reporting issue. 6. The district delayed from June to July purchasing, and paying for, 10 school buses at a cost of $750,000. The buses are expected to last for 10 years and have no salvage value. The district charges depreciation on a straight -line basis and takes a full year’s depreciation in the year of acquisition.

Explanation / Answer

Since here the purchase is postponed from june to july there will be no impact for botht the general fund expenditure and government wide expense for June month

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