When a government transfers the rights and obligations of an asset to another legally separate governmental or private sector entity, the transaction is referred to as:
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Goverment transfers the rights and obligations of an asset to another legally separated government or privet sector . so this is a service concession arrangement .
Answer) D) A service concession arrangement.
When a government transfers the rights and obligations of an asset to another legally separate governmental...
Service Concession Arrangements (SCAs) allow governments to enter into an agreement with another entity in the public or private sector, in which the external entity, the operator, provides public services through the use of the asset, to the transferring government. This allows the government to generate income and cash flows from its capital assets and possibly improve the efficiency of public services. Under an SCA, the government essentially transfers the rights and obligations of an asset to the external entity....
Under a service concession arrangement, A. The transferring government continues to report the transferred asset as a capital asset and any related contractual obligations as liabilities B. The operating government will record the transferring government’s payment or receivable, a liability for the present value of significant contractual obligations and a corresponding deferred inflow of resources for the difference between the two C. Any deferred inflow is recognized as revenue at the time the arrangement takes place D. All of the...
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Just journal entry for government funds
accounts used:
No Journal Entry Required
Accumulated Depreciation
Appropriations
Budgetary Fund Balance
Buildings
Capital Lease Obligations Payable
Cash
Construction Expenditures
Construction Work in Progress
Encumbrances
Encumbrances Outstanding
Estimated Revenues
Expenditures—General Government
Expenses—General Government
Expenses—Public Safety
Fund Balance—Assigned
Fund Balance—Unassigned
Gain on Sale of Machinery
Interfund Transfers Out
Land
Loss on Sale of Machinery
Machinery and Equipment
Other Financing Sources—Capital Lease Agreements
Other Financing Sources—Proceeds of Capital Asset Sale
Other...
MC11-14. Which of the following is considered an asset in computing the quick ratio? Supplies inventory Prepaid insurance Investments in long-term bonds Certificates of deposit purchased with an original maturity of 30 days MC11-15. What is the basic purpose of calculating the number of days' cash on hand? To determine the speed with which property taxes are collected To determine whether cash should be invested in certificates of deposit To determine how long the cash and short-term investments will be...
Use the following to answer the next six questions: During the fiscal year ended December 31, 2017. the City of Johnstown issued 6% genera obligation serial bonds in the amount of $2.000.000 at 102 ($2.040,000) and used $1,980,000 of the proceeds to construct a fire station. The $40,000 premium was transferred to a debt service fund. The $20.000 left in the capital projects fund at the end of the project was later transferred to the debt service fund. The bonds...
Question 11 (2 points) Pat, Helma, and Diane are partners with capital balances of $50,000, $30,000, and $20,000, respectively. The partners share profits and losses equally. For an investment of $50,000 cash, MaryAnn is to be admitted as a partner with a one-fourth interest in capital and profits. Based on this information, the amount of MaryAnn's investment can best be justified by which of the following? Question 11 options: The book value of the partnership's net assets was less than...
Which of the following transactions should be classified as investing activities on an entity's statement of cash flows? Increase in accounts receivable. Sale of property, plant and equipment. Payment of cash dividend to the shareholders. Issuance of common stock to the shareholders. On January 1 of the current year, Wren Co. leased a building to Brill under an operating lease for ten years at $50,000 per year, payable the first day of each lease year. Wren paid $15,000 to a...
In a nonprofit, nongovernmental hospital, courtesy allowances are charity care services. revenue deductions. expenses. revenues earned even if the standard charge is above or below the allowance. 3.75 points QUESTION 3 The key focus of government fund accounting concerns the current ability to provide and fund services and goods. capital expenditures. income measurement. intergovernmental transfers from the general fund. 3.75 points QUESTION 4 Voluntary health and welfare organizations are supported by, and provide voluntary services to, the public....
TRUE OR FALSE/ MULTIPLE CHOICE and word response
questions.
C. a more permanent government involvement in the banking system, even creating a pational banking system that owns and operates most of the global and regional banks. Deshort-term increases in government spending to stimulate the economy. 20. When describing the state of the U.S. economy, reporters often refer to the nation's GDP, its unemployment rate, and the CPI. Explain what each of these terms means and why each measure is significant....
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Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...