Basic Governmental accounting concepts - Defining and understanding the nature of assets
3 important questions on Basic Governmental accounting concepts - Defining and understanding the nature of assets
The definition of what is considered a cash equivalent originated in the rules for preparing statements of cash flows. What is this definition?
The term cash equivalents refer to investments that are so close to being realized as cash, they are viewed essentially as the equivalent of cash.
Taxes are one type of “nonexchange” transaction. Who owns the taxes?
The government.
The other significant category of receivables, accounts receivable, is often referred to as trade accounts receivable. What do these accounts represent?
These receivables represent funds that are owed to the government from individuals or other organizations because of services provided or goods sold to these other entities.
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