0
Modified
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
Why does an agency fund not have revenue and expenses?
Agency funds are purely custodial in nature which is why the fund wouldn't have revenue or expenses. The fund balance sheets show only assets (such as cash and investment) and liabilities (which is the amounts owned to the beneficiaries). Assets always equal liabilities which is why there are no net assets
What Distinction between capital and revenue in point?
Capital is fund injection by stakeholder(s) in a business entity. It could be in the form of outright purchase of right into the business or through reinvestment of profit. Revenue is money generated by the business through sales of goods or service.
A special cash fund used to make small payments that occur frequently is called a?
petty cash
What was the Reserve Fund?
The Reserve Fund was the first money market mutual fund
What Factors affect the choice of a cash or accrual basis?
Generally there are four conditions for whichcash basis is appropriate:i. Where no inventoryii. no natural connection between debtors & creditors,iii. no fund of circulating capital andiv. but rather where payment is largely a reward for servicesWhen small organisations are starting off they usually begin with a cash basis accounting system. This simply uses the business receipt's book and bank deposit details to track income and the business cheque book to track expenditure. Small business needs to be very careful while recording all these details on every transaction occurred to work the job done well. However, this could become complicated when business need to work out payrolls and tax liabilities (Our Community).Accrual accounting differs from the simpler cash basis accounting in that a business make an entry into their ledger at the time they incur a debt or receive a grant, not on the date when they actually pay out or get in the money. Accrual accounting is generally preferable when a business can manage this, because it gives a better idea of where the organisation stands in the medium term. If the organisation works on short-term transactions and does not have long-term debts or commitments, the business may be able to get away with cash flow accounting while business still stay small.Some non-profits use a modified-cash basis of accounting, which is a cross between accrual accounting and cash basis accounting. The entity can choose to use a cash basis of accounting for goods and services tax purposes if it is:A charitable institutionA trustee of an endorsed charitable fundA gift deductible entity, orA government school (Australian Taxation Office).They will record payroll taxes withheld from employees or large revenue or expense items on an accrual basis. This means recording revenues when they are earned and expenses when obligations are incurred (Our Community).Reference:OurCommunity.com.au, Understanding basic bookkeeping,< http://www.ourcommunity.com.au/boards/boards_article.jsp?articleId=65>
Is the enterprise fund full accrual or modified accrual accounting?
It's full accrual because it is considered part of the business type activities of a government. Something, such as the general fund, is considered modified because it is a budgetary tool and it would not consider future liabilities, only current.
What is minimum number of special revenue funds you would expect a local government to have?
The local governments usually have multiple Special Revenue Fund.
Can you transfer an asset from a special revenue fund to the general fund that is depreciated but still has a value if sold at no cost?
yes
What fund would a township report depreciation a. General fund b. Special Revenue c. Capital Projects d.Internal Service?
general fund
What are some similarities and differences between a general fund and special revenue fund?
The General Fund and Special Revenue Funds generally perform the same types of operating services. They are both governmental type funds and therefore use the same measurement focus and basis of accounting to account for and report on their activities. They differ in that the General fund accounts for revenues and other financing sources raised to provide for all day-to-day-operating activities, whereas Special Revenue Funds are used to account for a specific revenue source that must be used only to finance a specified activity
What are some similarities and differences between a general fund and a special revenue fund?
The General Fund and Special Revenue Funds generally perform the same types of operating services. They are both governmental type funds and therefore use the same measurement focus and basis of accounting to account for and report on their activities. They differ in that the General fund accounts for revenues and other financing sources raised to provide for all day-to-day-operating activities, whereas Special Revenue Funds are used to account for a specific revenue source that must be used only to finance a specified activity
When was Revenue Equalization Reserve Fund created?
Revenue Equalization Reserve Fund was created in 1956.
What fund measures the states fiscal health?
The general revenue fund (?)
What is life assurance fund?
It is the excess revenue income over revenue expenditure for an insurance company.
How do magazine companies fund their magazines?
Magazines use advertising revenue to fund most of the publication costs.
State revenue cannot be used to fund what?
private businesses
Why does an agency fund not have revenue and expenses?
Agency funds are purely custodial in nature which is why the fund wouldn't have revenue or expenses. The fund balance sheets show only assets (such as cash and investment) and liabilities (which is the amounts owned to the beneficiaries). Assets always equal liabilities which is why there are no net assets
