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
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. 1. Owing to a special discount offered by a supplier, the district will purchase $100,000 of supplies in June 2017 that they otherwise would not have purchased until July 2017. They will not, however, have to pay for the supplies until July. The district account for supplies on purchase basis.
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