It is sometimes said that in debt service funds the accounting for interest revenue is inconsistent with

Question:

It is sometimes said that in debt service funds the accounting for interest revenue is inconsistent with that for interest expenditure. Explain. What is the rationale for this seeming inconsistency?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Government and Not for Profit Accounting Concepts and Practices

ISBN: 978-1118155974

6th edition

Authors: Michael H. Granof, Saleha B. Khumawala

See More Books

Question Posted: Aug 13, 2014 11:46 AM

See More Questions

It is sometimes said that firms prefer to make stock repurchases rather than pay dividends because stock repurchases yield a higher eps. Do they?
It is sometimes said that performance audits are not true audits in that they are conceptually different from traditional nancial audits. In what way are they conceptually different?
It is sometimes said that ethics hold a person to higher standards than laws. Explain.
Suppose you are going to put up your own company, list down at least ten of your possible contributions to the socio-economic development in your community. Name of Business: Name of Owner/s: 2. 4....
Recall that in a random sample of 106 social (or service) robots designed to entertain, educate, and care for human users, 63 were built with legs only, 20 with wheels only, 8 with both legs and...
On January 1, 2024, Wetick Optometrists leased diagnostic equipment from Southern Corp., which had purchased the equipment at a cost of $1,437,237. The lease agreement specifies six annual payments...
Five players on a basketball team must each choose a player on the opposing team to defend. In how many ways can they choose their defensive assignments?
Corporate Bank has $ 840 million of assets with a duration of 12 years and liabilities worth $ 720 million with a duration of seven years. Assets and liabilities are yielding 7.56 percent. The bank...
Question 10 Best Buy reported the following selected information for its three most recent fiscal years in U.S. $ millions): Net sales Cost of goods sold Income from operations Net income 2016...
The income statement of Fezzik's Shoe Repair is as follows: On April 1, the Owner's Capital account had a balance of $12,900. During April, Fezzik withdrew $3,000 cash for personal use. Prepare...
When bonds are issued for capital projects, premiums are generally not accounted for as the mirror image of discounts. Why not?
At one time governments maintained a unique type of fund to account for special assessments. This fund recorded the construction in process, the long-term debt, and the assessments receivable....
Rollins Computer Timeshare Company entered into the following transactions during May 2006. 1. Purchased computer terminals for $21,500 from Digital Equipment on account. 2. Paid $4,000 cash for May...
Caching. CPUs. Hard disk drives. Parallelism. Pipelining. RAM. Registers. Solid-state drives. Dinkleberg 1. (3 points) You know that neighbor who always one-ups you? Apparently, he just bought a...
Information for Question 1 and 2: The National Health Interview Survey is an annual national health survey of people living in about 35,000 randomly selected households in the United States. On the...
Q1. There is trampoline on the ground, and connected to spring of spring constant, k, on the bottom. You are holding a child of mass, M on a H tall building top (H is measured from the trampoline to...
SPSS for intermediate statistics extra problems solutions d. Approximately how much variance in consumers' tendency to purchase the product could be predicted from these variables? If you owned the...
A finance company uses the discount method of calculating interest. The loan principal is $5,000, the interest rate is 10%, and repayment is expected in two years. You will receive 4196.25 X from the...
How would you describe each step, in order, in the strategic planning process?
You are planning to purchase your first home five years from today. The required down payment will be $50,000. You currently have $20,000. but you plan to contribute $500 each quarter to a special...
Why is the optimal capital structure often called the target capital structure?
Distinguish among Accounting Research Bulletins, Opinions of the Accounting Principles Board, and Statements of the Financial Accounting Standards Board.
Distinguish among Accounting Research Bulletins, Opinions of the Accounting Principles Board, and Statements of the Financial Accounting Standards Board.
Distinguish among Accounting Research Bulletins, Opinions of the Accounting Principles Board, and Statements of the Financial Accounting Standards Board.
Create a Data Table to depict the future value when you vary the interest rate and the investment amount. Use the following assumptions: Interest Rates: Investment Amounts:-10.0% $10,000.00 -8.0%...
Isaac earns a base salary of $1250 per month and a graduated commission of 0.4% on the first $100,000 of sales, and 0.5% on sales over $100,000. Last month, Isaac's gross salary was $2025. What were...
Calculate the price, including both GST and PST, that an individual will pay for a car sold for $26,995.00 in Manitoba. (Assume GST = 5% and PST = 8%) a$29,154.60 b$30,234.40 c$30,504.35 d$28,334.75...

It is sometimes said that in debt service funds the accounting for interest revenue is inconsistent with

Question:

Step by Step Answer:

Interest on investments is generally recognized as revenue is earned ie on a full accr...View the full answer

Government and Not for Profit Accounting Concepts and Practices

Students also viewed these Accounting questions