Government-Wide Financial Statements - CPA Financial Accounting and Reporting (FAR)

Card 1 of 24

0
Didn't Know
Knew It
0
1 of 2019 left
Question

The library of the city of Howerton has ordered new shelving units at the cost of $40,000. How is this order recorded by the city in the government-wide financial statements?

Tap to reveal answer

Answer

Financial commitments (such as ordering items before receiving them) are recorded in the fund financial statements as encumbrances but they are not recorded in the government-wide statements.

← Didn't Know|Knew It →