The unique aspects of the accounting process utilized within the governmental funds are the General Fund, Special Revenue Funds, Capital Projects Funds, Debt Service Funds, and Permanent Funds. It is in these funds where the distinct approach of governmental accounting can best be seen. Because of the dual nature of the reporting process, much of this accounting must be demonstrated [...]
In this article we will discuss about:- 1. Accounting for Capital Leases 2. Accounting for Works of Art and Historical Treasures 3. Accounting for Infrastructure Assets and Depreciation 4. The Primary Government and Component Units. Accounting for Capital Leases: The notes to the 2006 financial statements of the City of Cleveland, Ohio, describe its role as a lessee: The City [...]
In this article we will discuss about the principles of investment in marketable securities. The cash surplus built up in excess of daily cash requirements can be invested in readily marketable short-term securities. These securities are also called as 'cash equivalents'. The investment in short-term marketable securities is made keeping in view the following objectives: (a) To earn interest for [...]