A government’s MD&A states that government-wide net position decreased as a result of the issuance of a long-term liability during the current reporting period. Does this sound correct? How does the issuance of long-term debt typically affect net position in the year of issuance

A government’s MD&A states that government-wide net position decreased as a result of the issuance of a long-term liability during the current reporting period. Does this sound correct? How does the issuance of long-term debt typically affect net position in the year of issuance

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 13MC: Which of the following is not a characteristic of a short-term note payable? A. Payment is due in...

See similar textbooks

Related questions

Q: The public debt is the sum of all previous: Budget surpluses minus the current budget deficit of…

A: Introduction: The entire amount borrowed by the government to meet its development budget,…

Q: Which of the following does not affect the measurement of the defined benefit obligation? A.…

A: A defined benefit plan is a type of retirement savings plan which provides pension to employees…

Q: When an entity breaches under a long-term loan agreement on or before the end of the reporting…

A: If an entity expects debt to be settled in the normal operating cycle, it is classified as Current…

Q: see attached pictures for questions

A: i) The fair value of the fixed rate debt at February 28, 2004 is $2,640,995, as since this…

Q: Which of the following is most likely to be regarded as an estimated liability that is subject to…

A: Solution Concept Estimated liability that is subject to provision It means that the amount…

Q: The amount of income taxes due to the government for a period of time is rarely the amount reported…

Q: Which of the following is not considered by an actuary when determining the annual contribution to a…

A: The correct answer with explanations are as follows.

Q: Of the following items, the only one which should not be classified as a current liability is…

A: Current Liabilities are those liabilities or obligations that needs to be settled or paid in short…

Q: What is a federal deficit? How is it managed?

A: A deficit implies when a nation's expenditure surpasses the nation's revenue. That means deficit…

Q: Why should executory contracts be disclosed in the financial statements? Group of answer choices…

A: Executory contracts are contracts under which neither party has performed any of its obligations or…

Q: Assume you are working in public accounting and the client you are assisting has a question on the…

A: A bond discount expense has been incurred and being an employee for a Public Accounting what…

Q: An expenditure for general obligation long-term debt is always recorded at year-end in the…

A: GASB: The GASB is the board that provides the guideline to the governmental units about proper…

Q: How are general long-tern liabilities distinguished from other long-term liabilities of government?…

A: Liabilities are described as the obligations which an entity is required to pay back. These can be…

Q: the debtors control column in the debtors journal was undercast how do you correct that?

A: A debtor control account is considered an account that includes information about money owed by the…

Q: 29. In accordance with the GAM for NGAs and the Revised Chart of Accounts, how does a government…

A: Government entity have their own Rules and manuals to record any journal,. GAM is Government…

Q: In the issuance of treasury bills (T-bills) the government is the a. Debtor b. Creditor c. Guarantor…

A: The treasury bills are the financial instruments for the business which are used to raise money from…

Q: A federal deficit occurs when

A: Deficits and surplus are the difference between revenues subtracted from expenses. The positive…

Q: For purposes of calculating the interest rate on overpayments and underpayments, the federal…

A: Interest is required to be paid on the amount borrowed from the outsiders i.e. the financial…

Q: while governments are not required to issue interim financial reports, what role does interim…

A: Financial reporting: Financial reporting is the procedure used to communicate the information…

Q: Short-term obligations can be reported as noncurrent liabilities if the company (a) intends to…

A: There are two conditions in which short term obligations can be reported as non current liabilities…

Q: When an entity breaches an undertaking under a long-term loan agreement on or before the balance…

A: As per IAS 1, Presentation of financial statement, Current liabilities are the liabilities of an…

Q: In accounting for short-term debt expected to be refinanced to long-term debt:(a) GAAP uses the…

A: Definition: Long-term debt: Long-term debt refers to the obligations of a firm that are due and has…

Q: Which would be the appropriate section in the codification for the following: "Borrowings…

A: The Financial Accounting Standards Board (FASB) is an accounting body whose main purpose is to set,…

Q: Why might the general obligation bonds of a state yield a return different from revenue bonds issued…

A: The question is based on the concept of municipal bonds used as debt security by local government to…

Q: One of the most effective ways to determine the overall reasonableness of interest bearing debt is…

A: On interest bearing debt, company is required to make payment of interest on debt.

Q: Interest payments on federal government bonds which are owned by the central bank 1, are recorded…

A: Interest payment is made by the issuer of securities to the buyer of securities in the consideration…

Q: The following are examples of non-adjusting events after the reporting period that would generally…

A: The determination after the reporting period of the amount of profit sharing or bonus payments, is…

Q: Interperiod equity refers to the concept that current-year revenues are sufficient to pay for…

A: Interperiod equity is the concept found in Generally Accepted Accounting Principles.

Q: What are the criteria for taxpayers to be able to deduct a debt written off as bad in income year?

A: Introduction: Bad debt: Bad debt refers to those accounts receivable that are uncollectible. Bad…

Q: When is an encumbrance recorded? What happens to this balance? How are encumbrances reported in…

A: The GASB is the board that provides the guideline to the governmental units about proper accounting…

Q: The current portion of long-term debt should a.be reclassified as a current liability b.be paid…

A: The liabilities which are payable within one year are considered but the liabilities having life…

Q: Taxpayers can deduct a nonbusiness bad debt beginning in the year it is deemed partially worthless.…

A: If a debt relating to a company or occupation has been irrecoverable in the previous financial year,…

Q: A temporary difference that would not result in a deferred tax asset but not a permanent difference?…

A: Solution: A temporary difference that would not result in a deferred tax asset but not a permanent…

Q: When an entity breaches a covenant under a long-term loan agreement on or before the end of the…

A: International Accounting Standards (IAS) 1 deals with the "classification of liabilities as current…

Q: Which of the following is correct about contingent liabilities and provisions? The terms are…

Q: Which of the following is not a liability that has priority in liquidation? Group of answer choices…

A: Liquidation: It is a process to end a business and distribute its assets to complainants. It is a…

Q: 11. Due to the enactment of the CREATE Law, some provisions therein produced confusions on the part…

A: Here asked for multi question we will solve for first question for you according to guidelines. If…

Q: 33. Contingent liabilities are:* Disclosed in the notes unless the possibility of an outflow of…

A: A liability whose occurrence depends upon the happening or non happening of future uncertain events…

Q: Which of the following is a temporary difference that normally is recognized for accounting purposes…

A: Temporary difference is the difference between when the revenue and expenses are reported for…

Q: An entity classifies the obligation as non-current if an entity expects, and has the discretion, to…

A: True Explanation: As per, IAS 1 Presentation of Financial Statements Current/non-current…

Q: Which one of the following is violated when a firm reports its long-term debt at the present value…

A: Long term debt is the amount of obligation which is reported as current liability in the account…

Q: A net operating loss occurs when tax-deductible expenses exceed taxable revenues. Tax laws permit…

A: Net Operating Loss Carry forward:The net operating loss is considered as negative taxable income.…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

In accounting for short-term debt expected to be refinanced to long-term debt: a. GAAP uses the authorization date to determine classification of short-term debt to be refinanced. b. IFRS uses the authorization date to determine classification of short-term debt to be refinanced. c. IFRS and GAAP use the financial statement date to determine classification of short-term debt to be refinanced. d. GAAP uses the date of issue, but only for secured debt, to determine classification of short-term debt to be refinanced.
Which of the following statements is true? a. If any portion of a non-current liability is to be paid in the next year, the entire debt should be classified as a current liability. b. "Current maturities of non-current debt” refers to the amount of interest on notes payable that must be paid in the current year. c. Even though current and non-current debt must be shown separately on the statement of financial position, it is not necessary to prepare a journal entry to recognize this. d. A non- current liability is an obligation that is expected to be paid within one year.
How are general long-tern liabilities distinguished from other long-term liabilities of government? How does the financial reporting of general long-term liabilities differ from the financial reporting of other long-term liabilities?
One of the most effective ways to determine the overall reasonableness of interest bearing debt is to examine the relationship between recorded _____________________ and the average principal amount of debt outstanding during the year.
5. An entity classifies the obligation as non-current if an entity expects, and has the discretion, to refinance or rollover an obligation for at least twelve months after the reporting period under an existing loan facility, even if it would otherwise be due within a shorter period. Select one: True or False
Which of the following statements is false? Unmatured principal installments and accrued interest which is due shortly after year end are required to be reported as liabilities in the debt service fund at year end. An encumbrance in a capital project fund is created when the contract for the work is signed or issued. Premiums generated from the issuance of bonds for a capital projects fund are generally transferred to the Debt Service Fund. If taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are recognized as revenues of the Debt Service Fund.
Which of the following is most likely to be regarded as an estimated liability that is subject to provision? a. Deferred revenues b. Current portion of a long-term debt c. Payroll liabilities d. Vacation pay liability
Where is debt callable by the creditor reported on the debtor's financial statements? a) Long term liability b) Current liability if the creditor intends to call the debt within the year , otherwise a long term liability. c) Current liability if it is probable that creditor will call the debt within the year, otherwise a long term liability. d) current liability
Which of the following is stated correctly? a. Current liabilities follow non-current liabilities on the statement of financial position under GAAP but non-current liabilities follow current liabilities under IFRS. b. IFRS does not treat debt modifications as extinguishments of debt. c. Bond issuance costs are recorded as a reduction of the carrying value of the debt under GAAP but are recorded as an asset and amortized to expense over the term of the debt under IFRS. d. Under GAAP, bonds payable is recorded at the face amount and any premium or discount is recorded in a separate account. Under IFRS, bonds payable is recorded at the carrying value so no separate premium or discount accounts are used.
Answer this please. Accounting question. If the collection of the note receivable is not reasonably assured, what is the gross profit to be recognized by the entity for the year ended December 31, 2020 in relation to the initial franchise fee?A. 60,028 C. 56,009B. 54,236 D. 45,037
What are the criteria for classifying an item as a current liability? What are some examples of current liabilities? Why is it important to classify a portion of long-term debt on a yearly basis as a current liability? What is the implication of misclassifying a liability as current or long-term?
Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org).Required:Determine the specific citation for accounting for each of the following items:1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed.2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities.3. Accounting for the revenue from separately priced extended warranty contracts.4. The criteria to determine if an employer must accrue a liability for vacation pay