Question

We learn that business-type activities of governments are accounted for in a fashion similar to those carried out by businesses. It is easy to understand that accounting for these services is done on a full accrual basis of accounting; however, give your opinion on the way in which this integrates with the modified basis of accounting used by governmental funds. Use the textbook and GASB materials to support your position.

• Analyze the various types of business-type funds used in governmental units, and provide an example of when each is appropriate. In developing your initial discussion post and in commenting on your classmates’ responses, consider the city, town, or county selected for the continuing problem or perhaps from published material from your home state or city.

Answer 1

changed gathering strategy for bookkeeping is a blend of money collection method.under the altered accumulation method,the agreeing is done as pursues;

REVENUE;

Revennues are required when they fulfills both quantifiability and accessibility crite
ria;

EXPENDITURE;
Costs are accounted according to collection strategy as they can be estimated as and when they incurred.The quantifiable criteria for government finances influences the sorts of exchanges to be perceived in the working assets.

In the event that exchanges identifies with non-current usage,then they are accounted for on government wide explanations and not on the working funds.There are two acknowledgment techniques for inventories and prepaid things under altered collection strategy for bookkeeping like;

buys technique; inventories and prepaid things are accounted for as consumptions as and when acquired.

utilization strategy; under this method,the inventories and prepaid things are perceived as an advantage at first and afterward expensed off in the period when stock and prepaid things are really used

DEPRECIATION;

Devaluation is recorded in the working assets as a cost on the suspicion that they identifies with current utilization of assets.

In this way,the government and non-benefit bookkeeping can be coordinated with adjusted gathering premise as pursued for government subsidizes bookkeeping.

THANK YOU