Question

In: Accounting

How are activities of and accounting and financial reporting for commonly used agency funds?

How are activities of and accounting and financial reporting for commonly used agency funds?

Solutions

Expert Solution

The activities of an accounting and financial reporting for commonly used agency funds are as follows:

  • The basic accounting treatment and the recognition and accounting should be done in accordance with the accrual concept, for which accounting activity is needed.
  • The standards of the financial reporting are also to be followed in the agency funds
  • In order to identify the risk assessment and investment procedure and its identification the financial reporting plays an important role in it
  • The ratio analysis and scheduling of the funding process, comparison of past analysis proper accounting gives the best idea and financial reporting makes the reliable tools for decision making
  • The fair and proper disclosure of the transaction and accounts need to be done in every aspect for which the activities are to be done with accounting and financial reporting is useful
  • Both accounting and financial reporting will help and useful measure while making the final decision
  • It also ensures that the compliance with the laid down principles, policies, and procedure of GAAP, GASB, and other applicable accounting treatment compliances.
  • In order to prepare any statements and for any calculations accounting gives the immediate accurate values and presentation.

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