Expenditures of a government for insurance extending over more than one accounting period May be allocated...

Expenditures of a government for insurance extending over more than one accounting period

May be allocated among periods or accounted for as expenditures when acquired.

Must be accounted for as expenditures of the period of acquisition.

Must be allocated between or among accounting periods.

Must be accounted for as expenditures of the periods subsequent to acquisition.

Solutions

Expert Solution

Solution:

As per GASB, "Expenditures for insurance and similar services (prepaid items) extending over more than one accounting period need not be allocated between or among accounting periods, but may be accounted for as expenditures of the period of acquisition."

Therefore Expenditures of a government for insurance extending over more than one accounting period "May be allocated among periods or accounted for as expenditures when acquired."

Hence first option is correct.

ekkarill92 answered 1 year ago

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