09 Jan Using the annual financial report obtained for Exe
Using the annual financial report obtained for Exercise l-l, answer the following questions: a. Look at the General Fund column of the Balance Sheet for governmental funds. What are the major assets? Liabilities? b. Does your government report any special revenue funds as major funds in the governmental fund statements? What are they? What are the major revenue sources? Expenditure functions? c. Review the notes to the financial statements to determine the measurement focus and basis of accounting used to prepare the governmental fund financial statements. Do the notes describe modified accrual accounting in a manner consistent with this book? Which revenue sources are subject to accrual? d. Look at the General Fund column of the governmental fund statements from the point of view of a financial analyst. Is the Fund Balance as of the balance sheet date larger or smaller than at the beginning of the year? Are reasons for the change apparent from the statements?
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