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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 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. Identify the measurement focus and/or basis of accounting related to the conceptual differences, differences in revenue recognition, differences in expense/expenditure recognition, differences in recognition of fixed assets, and differences in the recording of long-term debt described below. a. Determines what is measured b. Determines when something is measured c. Measures all economic resources, including capital assets and long-term debt. d. Measures primarily financial resources and does not recognize long-term assets and liabilities. e. Recognizes revenues when earned and expenses when incurred. f. Recognizes revenues when measurable and available to finance expenditures of the current period. 9. Expenditures are recognized when goods or services are received. h. Expenses are recognized when goods or services are used. Expenses are L matched with the revenues those expenses generate. Fixed assets are capitalized and depreciated. Fixed assets are not capitalized or depreciated; rather fixed assets are charged to expenditures when received. k. Long-term debt is not recorded as a liability 1. Long-term debt is recorded as a liability; repayments are recorded as a reduction of that liability.
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