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There are no capital assets in governmental-type funds because those funds account only for inflows and outflows of financial resources. Governmental-type funds can be used and indeed are used to acquire capital assets. When that happens, however, the accounting within the funds is such that there is an expenditure of financial resources, rather than an exchange of a financial resource for a capital asset. Capital assets are reported in government-wide financial statements, but not in fund financial statements.
What else can I help you with?
Why are capital appreciation funds funds risky?
This type of fund is considered relatively risky and more volatile than many other funds because it typically focuses on securities of companies or industries with unproven potential for strong growth
What are the different types of trust accounts available for managing assets and funds?
The different types of trust accounts available for managing assets and funds include revocable trusts, irrevocable trusts, living trusts, testamentary trusts, and special needs trusts. Each type has specific features and benefits depending on the individual's needs and goals.
What is capital spending?
Capital spending, also known as capital expenditure (CapEx), refers to the funds a company uses to acquire, upgrade, or maintain physical assets such as property, buildings, technology, and equipment. This type of spending is essential for long-term growth and operational efficiency, as it enables businesses to invest in infrastructure and improve their productive capacity. Unlike operational expenses, which cover day-to-day costs, capital spending is typically seen as an investment that provides benefits over multiple years.
What is the difference between infrastructure and capital goods?
Infrastructure typically refers to core components of something - most commonly associated with streets, water systems, etc... Capital Goods is a slang term for Fixed Assets (Which is alos what Infrastructure Assets happen to be). Technically, there is no difference as they are both Fixed Assets of an entity. The type of entity will tell you the degree to which the terms "Infrastructure" and "Capital Goods" or correctly or incorrectly being used. For example, you would normal see Infrastructure Assets listed on the balance sheet of a Municipality / City / Town / State, etc. You will not see "Capital Assets" on a correctly prepared balance sheet in the United States because jargon / slang teminology is not acceptable by the governing bodies.... and us CPA's are anal enough to wince when we see stuff like that, lol.
List six types of managed funds?
-Income Funds These funds focus on generating an income stream with low risk of capital loss. tend to be heavily weighted in cash and fixed interest type investments. - Growth Funds These funds focus on long term capital growth. tend to be heavily weighted in property securities, Australian shares, international shares or all three.-Single sector Funds Single sector funds invest in just one asset class-Diversified Funds These funds tend to diversify across a number of asset classes.-Index Funds These funds aim to achieve performance returns broadly in line with a selected market index (e.g. the ASX Top 100).-Active Funds These funds are actively managed and aim to outperform a particular index (for example outperform the returns of the S&P ASX Top 100).-Platforms This isn't a managed fund, but an administrative structure which allows you to invest in a broad range of investments such as managed funds, master trusts, direct shares and insurance products.-Multi-manager funds -Rather than investing directly in shares, cash or fixed interest, the fund invests in a selection of other managed funds.
Why are there no capital assets in government type funds?
There are no capital assets in governmental-type funds because those funds account only for inflows and outflows of financial resources. Governmental-type funds can be used and indeed are used to acquire capital assets. When that happens, however, the accounting within the funds is such that there is an expenditure of financial resources, rather than an exchange of a financial resource for a capital asset. Capital assets are reported in government-wide financial statements, but not in fund financial statements.
Which type of governmental transfer of funds gives states the most latitude in the use of the money?
Block Grant.
What are governmental proprietary funds?
Proprietary funds are those used to account for the government's business-type activities where fees are charged for the services rendered, for example, utility services.
Are ETF's the most popular investment?
No, Mutual Funds are by far the most popular type of investment. ETF assets are increasing at a rapid pace but still fall far short of assets invested in Mutual Funds.
What is meant by governmental factoring?
Governmental factoring is a term used to describe the Government providing capital to small and medium sized businesses. This type of service allows businesses to expand and helps boost the economy.
Where does capital expenditures fit in balance sheet?
Capital expenditure are those type of expenditure the benefits of which are taken in more then one years by the business entity. So according to this all fixed assets are capital expenditures and fixed assets are shown at asset side of balance sheet.
What is a floating charge?
A floating chargeis a kind of security to which all of the assets (or perhaps a particular type of assets) from the business, apart from individuals that are susceptible to a mortgage or fixed charge, are utilized as to safeguard the borrowed funds.
Which two fund types would you typically find in operating environments?
In operating environments, you would typically find working capital funds and reserve funds. Working capital funds are used for day-to-day operations and expenses, while reserve funds are set aside for unexpected or future expenses to ensure financial stability.
Define capital expenditure?
Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. This type of outlay is made by companies to maintain or increase the scope of their operations. These expenditures can include everything from repairing a roof to building a brand new factory.
What type of assets are capital assets and how do they differ from current assets?
Capital assets, also referred to as capital goodsand plant, property and equipment, are a kind of non-current asset. The main purpose of these assets is generating revenue for an entity by being used for one or more purposes. An example of a capital asset is a delivery truck used by a delivery firm; the truck helps to generate revenue for the firm as they use it to provide delivery services. A firm does not sell capital goods to generate revenue (as they would sales stock), and they may keep them many years.Current assets are assets that are expected to be used or turned into cash by the end of the reporting period. This includes sales stock (which is expected to be sold, at least in part, by the end of the reporting period), and bank (which the entity is likely to spend cash from within the reporting period). Capital assets are not current assets, as they are not expected to be turned into cash or used up within the reporting period.
What type of account is a drawing account?
A Drawing account is a contra capital account and is used by a proprietor type business. It is for recording the owner's withdrawals of the company's assets.
Why are capital appreciation funds funds risky?
This type of fund is considered relatively risky and more volatile than many other funds because it typically focuses on securities of companies or industries with unproven potential for strong growth
