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mart [117]
3 years ago
15

Which of the following financial statements are required for a Debt Service Fund? Multiple Choice Statement of revenues, expendi

tures, and changes in fund balances only. Balance sheet and statement of revenues, expenditures, and changes in fund balance only. Balance sheet; statement of revenues, expenditures, and changes in fund balance; and statement of cash flows. Statement of net position only.
Business
1 answer:
Setler79 [48]3 years ago
7 0

Answer:

Balance sheet; statement of revenues, expenditures, and changes in fund balance.

Explanation:

Under the Codification of Governmental Accounting and Financial Reporting Standards by the Governmental Accounting Standards Board (GASB); Code 200 states that debt service funds are to be used to service terms and bond reserves, guaranty, warrants, note, capital leases, or sinking funds.

Debt service funds is a cash reserve which is used to report account and pay for the interest and principal payment on financial resources that are restricted, committed or assigned to expenditure except debt of proprietary and fiduciary funds who account for their own interest and principle payments.

The purpose of using a debt service fund is to reduce the risk of a debt security for investors, thereby making it more attractive and appealing to them. Also, the debt service fund helps to mitigate the effective interest rate needed by the government to sell the offering.

The following financial statements are required for a Debt Service Fund;

I. Balance sheet.

II. Statement of revenues.

III. Expenditures.

IV. Changes in fund balance.

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You currently purchase a part used in your production process from an outside supplier, and have decided to begin making this pa
KIM [24]

Answer:

At an annual requirement of 40,000 units, selecting the low-cost option will save the company per year:

b) $50,000

Explanation:

a) Data and Calculations:

ALTERNATIVE                           FIXED COST            VARIABLE COST

Special-Purpose Equipment     $200,000 per year      $15 per unit

General-Purpose Equipment     $50,000 per year     $20 per unit

Total Cost of Production for 40,000 units under the two alternatives:

ALTERNATIVE       FIXED COST    VARIABLE COST         TOTAL  COSTS

Special-Purpose   $200,000      $600,000 ($15*40,000)    $800,000

General-Purpose     $50,000    $800,000 ($20*40,000)   $850,000

b) The difference between the two alternatives in total costs is $50,000 ($850,000 - $800,000) with the low-cost alternative as the Special-Purpose Equipment.

7 0
3 years ago
Explain why, in seeking to avoid financial crisis, the government's role as regulator of the financial system does not imply it
GREYUIT [131]

Answer: Market Efficiency

Explanation:

It is important that the Government as a regulator should not get involved in acts that would protect individual institutions from failure because that would defeat the whole purpose of a competitive industry.

If a government is known to directly involve itself in the protection of institutions from failure, efficiency in institutions may become low because of the lack of fear of failure as companies believe that should they run into bad times, they will simply be bailed out by the government so there is no need for them to maintain a competitive edge.

This can lead to a situation where we have companies performing sub optimally in an economy which can only act to reduce the Economic growth of a country.

Government institutions usually have such backing and in a lot of countries are prone to failure. Look at the Bamangwato Concessions Limited (BCL) mine in Botswana for instance that kept failing and refusing to improve it's efficiency because they could always run back to the government for a bailout. Their position eventually became so untenable that bankruptcy was the only option.

3 0
3 years ago
22) BS Company is considering eliminating the following product line: Product AXP Sales $ 80,000 Less variable costs: Raw materi
Naily [24]

Answer:

Avoidable costs= $60,000

Explanation:

Giving the following formula:

Raw materials 50,000

Direct labor 10,000

Facility-level costs allocated to products 30,000

<u>We were not provided with information regarding the fixed allocated costs. If none of the fixed allocated costs are avoidable, only the variable cost will not be incurred if the product is eliminated.</u>

Avoidable costs= $60,000

8 0
3 years ago
Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm di
kiruha [24]

Answer:

Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm discovers a technology that makes its wheat taste better and have fewer calories than all other wheat offered in the market, the wheat market would become less competitive because the products would no longer be similar in the wheat market- Option c.

Explanation:

Option c is the correct answer- the products would no longer be similar in the wheat market, the reason being that people with different taste preferences would prefer either of the two kinds of wheat available in the market, therefore making them less concentrated.

3 0
3 years ago
Read 2 more answers
he following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal o
maxonik [38]

Answer:

Explanation:

1) Total direct costs for the Apparel Department $128750:

Total Direct costs of Apparel Department  

Apparel Department cost of sales - Evendale store $105,600

Apparel Department sales commission - Evendale store $11,350

Apparel Department manager's salary - Evendale store $11,800

Direct costs  $128,750

2) Total direct costs for the Evendale Department $173,800:

Apparel Department cost of sales - Evendale store $105,600

Store manager's salary - Evendale store $12,300

Apparel Department sales commission - Evendale store $11,350

Store utilities - Evendale store $19,200

Apparel Department manager's salary - Evendale store $11,800

Janitorial cost - Evendale store $13,550

Direct costs - Evendale store $173,800

3) Total direct costs for the Apparel Department that are also variable costs- $116950 :

Apparel Department cost of sales - Evendale store $105,600

Apparel Department sales commission - Evendale store $11,350

Direct variable costs - Apparel Department $116,950

4 0
3 years ago
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