Question

In: Accounting

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 2 years ago
Next > < Previous

Related Solutions

Which characteristics below are distinct for insurance? May be more than one option a. Pooling of...
Which characteristics below are distinct for insurance? May be more than one option a. Pooling of losses – is the heart of insurance. Pooling means that losses are spread over a large group of individuals so that each individual realizes the average loss of the pool b. Payment only for random losses – is one that is unforeseen and unexpected and occurs as a result of chance c. Risk transition – a transition of a risk from an insured to...
Medigap is a private insurance product that causes government expenditures through Medicare to be higher than...
Medigap is a private insurance product that causes government expenditures through Medicare to be higher than otherwise. Let’s see how we can estimate just how much more the government spends as a result. 70 yr old Mr. Smith has frequent need for doctor-administered injections that improve his hip functioning. His demand for these treatments is given by P=30-0.60Q where P is the full market price of the service (if Mr. Smith had no insurance), and the supply of these treatments...
2. There may be only one or there may be more than one correct response to...
2. There may be only one or there may be more than one correct response to this question. You need only mark any one of the possible correct responses to be marked correct. A - Touch the top of the electroscope with your finger B - Remove your finger from the top of the electroscope C - Touch the top of the electroscope with a glass rod that was just previously rubbed by silk D - Touch the top of...
Which of the following is NOT a reason that Disability Insurance may be more important than...
Which of the following is NOT a reason that Disability Insurance may be more important than Life Insurance? Disability Insurance will often have a higher capital (lump sum) payout than Life Insurance. The likelihood of becoming disabled during a person's employment years is equal to, or greater than, the likelihood of passing away. When a family's primary income earner becomes disables, expenses may increase. In addition to needing his/her pre-disability income, the disabled person may need special equipment, rehabilitation, or...
Discuss why an organization may decide to target more than one market segment. If more than...
Discuss why an organization may decide to target more than one market segment. If more than one segment is targeted, what challenges do you think may exist?   
Suppose the government increases government expenditures in the future period, makes no changes to current taxes,...
Suppose the government increases government expenditures in the future period, makes no changes to current taxes, and will not change its future government expenditures. Use the intertemporal government budget constraint and the intertemporal consumer’s budget constraint to describe the impact on consumers’ lifetime income.
A firm may choose a project with a rapid payback period rather than one with a...
A firm may choose a project with a rapid payback period rather than one with a larger net present value. Discuss the validity of this statement. paragraph answer:
A firm may choose a project with a rapid payback period rather than one with a...
A firm may choose a project with a rapid payback period rather than one with a larger net present value. Discuss the validity of this statement.
A) Which of the following statements are true? Note that there may be more than one...
A) Which of the following statements are true? Note that there may be more than one correct answer; select all that are true. As the p-value increases, the evidence against the null hypothesis also increases. In hypothesis testing, if the p-value is sufficiently small, then the null hypothesis can be rejected in favour of the alternate hypothesis. If the null hypothesis is true, then the p-value will always be greater than 0.1. If the null hypothesis is false, then the...
If the U.S. government wanted to institute more control over the country’s health insurance system, what...
If the U.S. government wanted to institute more control over the country’s health insurance system, what are two international models they could look to? What are the features of these models
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT