Alternative Reporting Models: Compliance and Liquidity v. Accrual and Consolidation

Examples and demonstrations for chapter II of Financial Reporting in Government
By Dr. John Sacco , George Mason University
Revised Saturday, April 12, 1997

Exercise

A preformatted exercise is given. It lists a set of activities that you must interpret and place into the correct category. Place an X in the correct category or categories.
Recognition and Measurement
Activity Cash Basis Accrual Basis Annual Only Long-Term Sub- Entity Consolidation
recognizes vacation that will not be taken this year         
aggregates values from all funds, eliminating any double counting        
ignores the costs of a legal suit against the government that will be not be paid until next year        
sets up a system to insure compliance with legislative mandates          
allocates the benefits from a building over the life of the asset         
sets up a fund to save enough annually to pay off a bond due five years from now         

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