Premium Essay

Chap. 11

In: Business and Management

Submitted By jwu528
Words 1020
Pages 5
Chapter 11
Chapter 11

Issues of Reporting, Disclosure and Financial Analysis

Questions for Review and Discussion

1. The key criterion is financial accountability — the primary government either appoints a voting majority of the unit’s governing body or a majority of the unit’s governing body is composed of primary government officials and

• the primary government is able to impose its will upon the potential component unit or

• there is the potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government.

2. Discrete presentation is when one or more component units are reported in separate columns, in addition to those pertaining to the primary government. Blending is when the component units’ transactions and balances are reported as if they were part of the primary government — that is, the component units’ funds are accounted for just as they were funds of the primary government. Blending is required when the primary government and the component units are controlled by governing boards having the same members or the component unit provides services solely to the primary government. If those conditions are not satisfied then discrete presentation is required.

3. Discrete presentation, as it must be applied in government-wide statements, allows for the aggregation of any number of different component units, irrespective of type and basis of accounting. Therefore, it is said, the information is overly aggregated and hence of little value. This problem is mitigated by the requirement of Statement No. 34 that the government provide detailed financial information about each of its major component units.

4. The three main sections of the CAFR are:

• the introductory section;

• the financial section and

• the statistical section.…...

Similar Documents

Premium Essay

Chap 8

... T F 4. The money market is a dealer only market whereas the capital market trading is dominated by exchanges. T F 5. The money market provides liquidity; the capital market finances economic growth. T F 6. Higher credit risk firms use the private placement bond market more out of necessity than choice. T F 7. The higher the marginal tax rate of individuals, the greater the after-tax return on tax-exempt securities relative to taxable securities. T F 8. Revenue bonds are generally considered more risky than general obligation bonds. T F 9. Households are the largest institutional investor in municipal bonds. T F 10. The Securities and Exchange Commission is the largest state regulator of securities markets. T F 11. A state turnpike authority is more likely to issue revenue bonds than general obligation bonds. T F 12. U.S. Treasury TIPS protect investors primarily from default risk. T F 13. A serial bond issue matures over a period of years. T F 14. Commercial banks purchase more tax-exempt securities when loan losses increase. T F 15. The after-tax return on a 9 percent municipal bond to a commercial bank in the 34 percent tax bracket is 5.94 percent. MULTIPLE-CHOICE QUESTIONS 1. Most general obligation bonds are sold through a. direct placement. b. negotiated bids. c. competitive bids. d. all of the above. 2. Select the answer that best depicts increasing required rates of return by investors. ...

Words: 4377 - Pages: 18

Premium Essay

Chap 6 Cost Leadership

...Chap 6 Cost Leadership Cost Leadership Strategies gaining advantage by reducing its economic costs below all of its competitors. 1. What are the major sources of cost advantages? a. Size differences and economies of scale: Exist when AC(Q)↓=TC(Q)/Q↑, until reach to optimal volume of production * Volume of Production and Specialized machines: Only big volume company has the ability to buy new machines to save cost. * Volume of Production and Cost of Plat and Equipment: Volume↑, per-unit-cost manufacturing operations↓ * Volume of Production and Employee Specialization: Volume↑, employment more specialized, cost↓ * Volume of Production and Overhead Costs b. Size differences and diseconomies of scale: when other firms grow beyond the optimal firm size, a smaller firm (which a level of production closer to the optimal) may obtain a cost advantage. * Physical limits to efficient size * Managerial diseconomies: too large to manage efficiently * Worker motivation * Distance to Market and Suppliers: transportation cost is too expensive and eat up those profit. c. Experience differences and Learning-curve economies: cumulated volume of production greater experience in manufacturing a product or service cost↓ * Learning curve vs economic scale: a) cumulated volume vs the volume at a given point in time and average units cost. b) Optimal volume affects cost per unit vs No optimal volume affects cost per unit ...

Words: 555 - Pages: 3

Premium Essay

Chap 4

...meaning. In the strictest sense, a virus is a program that copies itself and infects a PC, spreading from one file to another, and then from one PC to another when the files are copied or shared. A worm is similar to a virus by design and is considered to be a sub-class of a virus. Worms spread from computer to computer, but unlike a virus, it has the capability to travel without any human action. A worm takes advantage of file or information transport features on your system, which is what allows it to travel unaided. Trojan horse is a malware that masquerades as a legitimate program but actually its destructive one. Yes they can, a Trojan horse can be part of the load of a worm and can be spread to many machines as part of a worm invasion. 11. Polymorphism causes greater concern because the malicious code changes over time, which makes this type of threat harder to detect because commonly used anti-virus software is not programmed to detect the newly changed attack. This makes it harder to protect against. 12. The most common form is piracy of intellectual property. Some organizations use water marks, embedded security code, and intentional placement of bad sectors in software. Many also use copy rights, patent, and on line registration of software. Twp agencies police IP, they are the SIIA, Software and Information Industry Association and SBA, Software Business Alliance. 13. Force majeure includes fire, flood, earthquake, lightning, landslide or mudslide, tornado......

Words: 1249 - Pages: 5

Premium Essay

Ais Chap 1

...to: Describe the major influences changing the nature and context of accounting information systems; Demonstrate an understanding of business information support systems. Illustrate an awareness of the role of accountants, accounting and finance related specialists in accounting information systems; History of Accounting 10 Early Accounting • Early forms of accounting can be found in Egypt and Mesopotamia. • Some records existed before money often in the form of clay or other forms of recording marks. • Accounting was important for government and merchants. • Edwards, J.R. (1989) A history of financial Accounting Routledge 11 Luca Pacioli (1494) • Pacioli included a description of double entry book-keeping in his text on mathematics. • This had been developed by merchants to record profits made on trading voyages. 12 Later development • Modern accounting began in the Industrial Revolution. • Record keeping was of course done by hand. • The growth of industry and the development of automatic methods of processing were first adopted for payroll processing and later by accounting. • Modern systems integrate accounting with other functions and are influenced by new information technologies and innovations. Fallacies of Accounting Information Systems •......

Words: 1541 - Pages: 7

Free Essay

Chap 3

...object-oriented methodology classifications. 3. Define and describe a Data Flow Diagram (DFD) and an Entity-Relationship Diagram (ERD). 4. Define and describe attributes, operations and relationships in an object-oriented methodology. 5. Define and describe the foundational characteristics of an object-oriented methodology. 6. Describe two classic information systems development challenges and their potential resolution. 7. Discuss Classification Theory and its relationship with object-oriented methodologies. 8. Describe Rational Corporation's Unified Software Development Process. 9. Define parallelism, substitution and omission. 10. Describe the Unified Modeling Language (UML) and describe Use Case, Class Diagram and Interaction Diagram. 11. Describe a simplistic object-oriented methodology for applying and using the UML. 12. Describe the foundational characteristics of the UML’s Class Diagram DESIGN A generic systems development life cycle (SDLC) was presented in an earlier chapter. You may recall that the purpose for this version of a SDLC was to give you a simplified way of sequentially studying the activities that are utilized to produce software-intensive information systems. In reality the SDLC for such systems is as diverse and variable as the organizations that create these systems. What is common is that all organizations follow some SDLC for the creation, maintenance and evolution of their software-intensive information systems. As you read through......

Words: 13243 - Pages: 53

Premium Essay

Psy 315 Chap 4

...Name: Unknown Chapter 4 Instructions Practice Problem 11, 14, & 18 Due Week 4 Day 6 (Sunday) Follow the instructions below to submit your answers for Chapter 4 Practice Problem 11, 14 & 18. 1. Save Chapter 4 Instructions to your computer. 2. Type your answers into the shaded boxes below. The boxes will expand as you type your answers. 3. Resave this form to your computer with your answers filled-in. 4. Attach the saved form to your reply when you turn-in your work in the Assignments section of the Classroom tab. Note: Each question in the assignments section will be listed separately; however, you only need to submit this form one time to turn-in your answers. Read each question in your text book and then type your answers for Chapter 4 Practice Problem 11, 14 & 18 in the shaded boxes below. Please record only your answers. It is not necessary to show your work. 11. Step 1 – Restate the research question; specify the null theory about the populations. - This is step is necessary because it is a reference point throughout the study. Always state the null theory and the alternate theory Null - Ho: Alternate - Ha: Step 2 – Determine the features of the compared distribution. Define the level of significance, using type 1 errors; identify sample size using data and resources that are available. Step 3 – Find out the sample’s score on the comparison distribution. Once the sample outcomes are the Z score can be computed as under: is...

Words: 380 - Pages: 2

Premium Essay

Project Mgt Chap 4

... B. WBS development 4. Step four: Integrating the WBS with the organization 5. Step five: Coding the WBS for the information system 6. Project rollup 7. Process breakdown structure 8. Responsibility matrices 9. Summary 10. Key terms 11. Review questions 12. Exercises 13. Case: Manchester United Soccer Club Chapter Objectives • To recognize the importance of a complete scope statement acceptable to your customer as a condition for project success • To layout guidelines for creating a WBS for a project • To demonstrate the importance of WBS to the management of projects and how it serves as a database for planning and control • To demonstrate how the OBS establishes accountability to organizational units • To apply a WBS to a case or suggested project Review Questions 1. What questions does a project objective answer? What would be an example of a good project objective? The project objectives answsers what, when, and how much. To replace the Williamette bridge by August 3rd at a cost not to exceed $1.5 million. 2. What is the difference between a project limit and a project exclusion? A limit is a constraint on the project, i.e. work on the bridge can only occur between 11:00pm and 6:00am or customer support is limited to 20 hours of in-house training. An exclusion spells out in advance potential deliverables that are not included in the project, i.e. appliances not provided on a new home construction......

Words: 1945 - Pages: 8

Premium Essay

Chap 1

...= π 0 ⎜ ⎜ i − g ⎟ . Next, solve this ⎟ ⎝ ⎠ (1 + i )π 0 equation for g to obtain g = i − . Substituting in the known values implies a PV firm growth rate of g = 0.10 − 275,000 be a reasonable rate of growth: 0.06 < 0.10 (g < i ) . (1 + 0.10)10,000 = 0.06 , or 6 percent. This would seem to 10. Effectively, this question boils down to the question of whether it is a good investment to spend an extra $100 on a refrigerator that will save you $25 at the end of each year for five years. The net present value of this investment is NPV = $25 $25 $25 $25 $25 + + + + − $100 2 3 4 5 1.05 (1.05) (1.05) (1.05) (1.05) = $108.24 − $100 = $8.24. You should buy the energy efficient model, since doing so saves you $8.24 in present value terms. 11. Under a flat hourly wage, employees have little incentive to work hard as working hard will not directly benefit them. This adversely affects the firm, since its profits will be lower than the $40,000 per store that is obtainable each day when employees perform at their peak. Under the proposed pay structure, employees have a strong incentive to increase effort, and this will benefit the firm. In particular, under the fixed hourly wage, an employee receives $144 per day whether he or she works hard or not. Under the new pay structure, an employee receives $264 per day if the store achieves its maximum possible daily profit and only $64 if the store’s daily profit is zero. This provides employees an incentive to work hard and to exert......

Words: 2176 - Pages: 9

Premium Essay

Chap 16

...AACSB learning skills: Questions 16–1 16–2 16–3 16–4 16–5 16–6 16–7 16–8 16–9 16–10 16–11 16–12 16–13 16–14 16–15 AACSB Tags Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Diversity, Reflective thinking Analytic Analytic Analytic Analytic Analytic Analytic Reflective thinking Analytic Analytic Analytic Analytic Analytic Analytic Analytic Analytic Analytic Analytic Analytic Analytic Analytic Analytic Analytic Exercises (cont.) 16–6 16–7 16–8 16–9 16–10 16–11 16–12 16–13 16–14 16–15 16–16 16–17 16–18 16–19 16–20 16–21 16–22 16–23 16–24 16–25 16–26 16–27 16–28 16–29 16–30 AACSB Tags Reflective thinking Analytic Analytic Analytic Analytic Analytic Communications Analytic Analytic Analytic Analytic, Reflective thinking Analytic Analytic Analytic Analytic Analytic Analytic Reflective thinking Analytic Analytic, Reflective thinking Analytic, Reflective thinking Reflective thinking Analytic Reflective thinking Communications Analytic Analytic Analytic Analytic Analytic Analytic Analytic Diversity, Reflective thinking Reflective thinking Reflective thinking Reflective thinking Brief Exercises 16–1 16–1 16–2 16–3 16–4 16–5 16–6 16–7 16–8 16–9 16–10 16–11 16–12 16–13 16–14 16–15 16–16 CPA/CMA 1 2 3 4 5 6 7 8 1 2 3 Exercises 16–1 16–2...

Words: 17693 - Pages: 71

Premium Essay

Chap 23 Solutions

... |16, 17, 19 |6, 7, | | | | | | | |8, 12 | | | | |3. |Direct vs. indirect methods of preparing|9, 20 |4, 5, 9, |3, 4 | |5 | | |operating activities. | |10, 11 | | | | |4. |Statement of cash flows— direct method. |11, 13, 14 |8 |4, 5, 7, 9, 12, 13 |3, 4, 6, | | | | | | | |7, 8 | | |5. |Statement of cash flows— indirect |10, 13, |8 |3, 6, 8, 11, 14, |1, 2, 5, 6, 7, 8,|2 | | |method. |15, 16 | |15, 16, 17, 18 |9 | | |6. |Preparing schedule |18 |12 | |5, 7, 8, 9 |5 | | |of noncash investing | | | | | ...

Words: 18705 - Pages: 75

Free Essay

Chap 1

...yet made up their minds, leave the conclusion open • For people whose ideas are already wellformulated and strong, state the conclusion 8-9 The Central Route to Influence: The Message and Its Delivery • Persuasive style: how to pitch the message – Encourage active participation – Use vivid language and metaphors – Incite the receiver’s fears – Violate the receiver’s expectations 8-10 Peripheral Routes to Influence The receiver attends less to the substance of persuasive arguments and is instead susceptible to more “automatic” influence through subtle cues • Usually occurs when the target of influence is either unmotivated or unable to attend carefully to the substance contained within a persuasive message 8-11 Aspects of Messages that Foster Peripheral Influence • Message order – Important points should be made early exposing the receiver to the primacy effect • Format – Arguments may be more or less effective depending on the channel in use or the presentation format • Distractions – When receivers are distracted, they are less able to engage in issue-relevant thinking 8-12 Source Characteristics that Foster Peripheral Influence • Source credibility – – – – – – – – Qualification and expertise Reputation for trustworthiness and integrity Self-presentation First impressions Status differences Intent to persuade Associates Persistence and tenacity 8-13 Source Characteristics that Foster......

Words: 726 - Pages: 3

Free Essay

Patho Chap 1

...level does not mean clinical diabetes, a single high blood pressure reading does not denote hypertension, and a temporary feeling of hopelessness does not indicate clinical depression. Cultural Considerations Each culture defines health and illness in a manner that reflects its experience. Cultural factors determine which signs, symptoms, or behaviors are perceived as abnormal. An infant from an impoverished culture with endemic chronic diarrhea and a degree of malnutrition would be viewed as abnormal in a progressive culture, such as a well-baby clinic in Sweden. Given cultural variations that affect definitions of normal and abnormal, the resulting pattern of behaviors or clinical manifestations affects what the culture labels as illness.11 Age Differences Many biological factors vary with age, and the normal value for a person at one age may be abnormal at another. Physiologic changes, such as hair color, skin turgor (tension), and organ size, vary with age. In general, most organs shrink; exceptions are the male prostate and the heart, which enlarge with age.12 Special sensory changes, such as severely diminished near-sight, high-tone hearing loss, and loss of taste discriminations for sweet and salty, are normal in an elderly adult and abnormal in a middle-aged adult or child. There are fewer sweat glands and less thirst perception in an elderly person than in a young adult or child. Elderly persons have diminished temperature sensations and can therefore sustain......

Words: 8886 - Pages: 36

Premium Essay

Accounting Chap 9

... Allowance for Doubtful Accounts 31,900 31 Cash Accounts Receivable—Peking Palace Co. 31,900 31,900 31,900 Ex. 9–5 a. b. Bad Debt Expense Accounts Receivable—Wil Treadwell 11,750 Allowance for Doubtful Accounts Accounts Receivable—Wil Treadwell 11,750 11,750 11,750 Ex. 9–6 a. b. $115,125 ($15,350,000 × 0.0075) $148,000 ($125,000 + $23,000) c. d. $76,750 ($15,350,000 × 0.0050) $165,500 ($180,000 – $14,500) Ex. 9–7 Account Avalanche Auto Bales Auto Derby Auto Repair Lucky’s Auto Repair Pit Stop Auto Reliable Auto Repair Trident Auto Valley Repair & Tow Due Date August 8 October 11 June 23 September 2 September 19 July 15 August 24 May 17 Number of Days Past Due 84 (23 + 30 + 31) 20 (31 – 11) 130 (7 + 31 + 31 + 30 + 31) 59 (28 + 31) 42 (11 + 31) 108 (16 + 31 + 30 + 31) 68 (7 + 30 + 31) 167 (14 + 30 + 31 + 31 + 30 + 31) 9-8 © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 9 Receivables Ex. 9–8 a. Customer Builders Industries Elkhorn Company Granite Creek Inc. Lockwood Company Teton Company Due Date Number of Days Past Due May 1 June 20 July 13 September 9 August 7 122 days (30 + 30 + 31 + 31) 72 days (10 + 31 + 31) 49 days (18 + 31) Not past due 24 days (31 – 7) b. Aging of Receivables Schedule August 31 Days Past......

Words: 9074 - Pages: 37

Premium Essay

Discussion Answers Chap. 8

...rate. Furthermore, there are no compensating balance requirements, though the firm is required to maintain approved credit lines at a bank. Finally, there is a certain degree of prestige associated with the issuance of commercial paper. The drawback is that commercial paper may be an uncertain source of funds. When money gets tight or confidence in the commercial paper market diminishes, funds may not be available. 9) Pledging accounts receivable means receivables are used as collateral for a loan; factoring account receivables means they are sold outright to a finance company. 10) A public offering is backed by an asset (accounts receivable) as collateral. Essentially a firm sells its receivables into the securities markets. 11) Three types of lender control used in inventory financing area. Blanket inventory – A type of secured loan that will give the lender a lien against all of the inventories of the borrower. Trust receipt – borrower holds the inventory in trust for the lender. Each item is marked and has a serial number. When the inventory is sold, the trust receipt is canceled and the funds go into the lender's account. Warehousing – the inventory is physically identified, segregated, and stored under the direction of an independent warehouse company that controls the movement of the goods. If done on the premises of the warehousing firm, it is termed public warehousing. An alternate arrangement is field warehousing whereby the same......

Words: 540 - Pages: 3

Premium Essay

Chap 18 Discussion

...direct authority over a line department. b) Sale s Dept. has line and Personnel Dept has staff responsibility. 3. Controller is the chief management accountant. Controller staff consist of a variety of other accountants who are responsible for specialized accounting functions such as systems and procedures, general accounting, budgets and budget analysis, special reports and analysis, taxes, and cost accounting. Controller have a Staff responsibility. 4. Management process 5 basis phases is Planning, Directing, Controlling, Improving, and Decision making. 5. Strategic planning- strategies 6. Directing 7. Controlling 8. A philosophy of controlling by comparing actual and expected results 9. Cost 10. Direct 11. Direct materials, Direct Labor, Factory Overhead 12. Direct materials cost 13. Direct Labor cost 14. Prime cost consist of direct materials and direct labor costs. Conversion costs consist of direct labor and factory overhead costs. 15. Product costs consist of manufacturing costs: DM, DL, and FO. Period costs consist of selling and administrative expenses 16. Materials inventory – consist of the cost of the direct and indirect materials that have not entered the manufacturing process. Work in process inventory – consist of DM DL FO costs for products that have entered the manufacturing process but are not yet completed. Finished goods inventory – consist of completed or finished products that have not been......

Words: 865 - Pages: 4

SHOP NOW | driver booster | [share_ebook] Enemy Waters