Governmental Accounting. 1) Explain why property tax revenues may be different o
ID: 2573098 • Letter: G
Question
Governmental Accounting.
1) Explain why property tax revenues may be different on the Governmental fund type statement of revenues, expenditures, and changes in Fund balance compared to the Government- wide statement of activities. Please add some specificity to your answer.
2) Give one specific example of a worksheet entry as Governmental fund type financial statement information is converted or adjusted to Government-wide Governmental activities financial statment information in regard to capital assets. Please do not answer this question by giving a journal entry.
3) What are some of the key differences between the proprietary statement of cash flows and the FASB for-profit statement of Cash flows( Four differences)
Explanation / Answer
Answer to 1)
Property taxes are :
Below are the reasons for the differences in the Property tax revenues in Govtal fund type statement of revenues, expenditures and changes in fund balance compared to the government-wide state ment of activities.
Accounting for Property Taxes
Modified Accrual basis (Fund wise financial statements)
Accrual basis (Government wide financial statements)
Presentation of property tax in financial statements
Government-wide Financial Statements - General Revenues
Proprietary Fund Financial Statements - Nonoperating Revenues
Governmental Fund Financial Statements - May be reported within Tax Revenues or broken out into a separate line item.
Property Tax Financial Reporting Considerations
1. Since property taxes are collected by the County, there is a lag in receipt of the revenues.
2. Receivable and unavailable should be reported for revenues not received within the period of availability.
3. Review receivable to ensure it is adjusted when the County adjusts the levy.
2 Answer)
Types of worksheet entries for capital adjustments are : Add Capital assets and deduct accumulated depreciation
Example:
Notes on GCA Adjustment
3 Answer)
Differences in Poprietary statement of cash flows (GASB) and FASB:
Assets Amount Amount Land 125,000 Buildings 1,250,000 Machinery & Equipment 398,000 Infrastructure 2,000,000 Construction in Progress 2,540,000 Accumulated Depreciation – Buildings 860,000 Accumulated Depreciation – Machinery & Equipment 160,000 Accumulated Depreciation – Infrastructure 1,300,000 Net Assets 3,993,200Related Questions
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