Governmental Reporting, Foreign currency translation and remeasurement.
You have recently graduated from an accounting program and been hired for a position in the administrative office of the City of East Chester. The city has just elected a new mayor who was a local football hero and is fond of saying he is “not good with numbers.” However, he is interested in learning about the city’s financial situation because he made a lot of expensive campaign promises and needs to figure out whether he can keep them.
- What is the difference between expenses and expenditures and why do they sometimes equal each other?
- How can this be? Shouldn’t they be the same? What is the difference between the two? Please explain.
- The total fund balance seems to have increased in the past year, but total net assets decreased. How could this happen?
- He decides he doesn’t want to look at all four statements and wants to know which one he should look at to figure out how much he can spend on his campaign promises. What is your response?