Select all that apply Which of the following statements are...

Select all that apply Which of the following statements are correct? Encumbered resources are not reported within the restricted, committed, or assigned categories. A department cannot commit the government to expend resources until it is granted budgetary authority through its appropriations. Commitments are reflected in budgetary accounts through the recording of encumbrances. GASB requires that significant encumbrances be reported separately within the fund balance section of the governmental funds balance sheet. Need help? Review

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00:01 So, here is a question the reconciliation of fund, reconciliation of funds balance sheet to the government wide statement of net position is as follows like for example, we can take it like net position in this dollar in 0 0 0 which means dollar in thousand.

00:31 So, total fund balance total fund balance sheet will be x dollar now amounts reported in the statement of net position are different because amounts different because the reason is number one when we talk about the capital asset.

00:58 So, capital assets used in government activities are not financial resources.

01:06 They are not financial resources and therefore are not reported in the funds and not reporting funds.

01:24 These assets are recorded in government wide settlement of net position which provide a long -term view of the government financial position.

01:31 The next thing is bonds payable when we talk about the bonds payable.

01:39 So, they are not due and payable in the current period.

01:43 They are not due and payable in current period and therefore are not reported in the funds.

01:58 Therefore not reporting funds while the outstanding bonds are a long -term liability and only the interest payment and principal payment during the current period and are reported in funds from this we can say outstanding bonds are the long -term liability.

02:22 So, from this only the interest payment and principal payment are due in current period and they are reporting funds.

02:37 Now, portion of revenue portion of revenue is not available to pay for current period expenditure and therefore is deferred in the funds.

02:55 So, we can say not report in funds...

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