Purchase Solution

Governmental Fund Balance Sheets

Not what you're looking for?

Ask Custom Question

The combined governmental fund balance sheet of the town of Paris is presented below.

Per schedules included in the notes to the financial statements, the town had $1450 of capital assets (net of
accumulated depreciation) and $1314 in long-term liabilities associated with the capital assets.

1. Recast the balance sheets in the form of a single consolidated, full accrual balance sheet.
2. Put yourself in the place of an analyst. The town mayor presents you with the consolidated balance sheet. He asserts that the town's financial position is excellent, as measured by the exceedingly healthy fund balance. Based on your having seen the combined balance sheet that shows the individual fund types, why might you be skeptical of his claim?
3. Comment on why a consolidated balance sheet is no substitute for a combined balance sheet that reports on major funds.

(See attached file for full problem description)

Attachments
Purchase this Solution

Solution Summary

This solution involves recasting balance sheets. Governmental fund balance sheets are determined.

Purchase this Solution


Free BrainMass Quizzes
Learning Lean

This quiz will help you understand the basic concepts of Lean.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Introduction to Finance

This quiz test introductory finance topics.