ACC 460 Week 2 DQs

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This pack of ACC 460 Week 2 DQs consists of:

DQ1: What is meant by an in-substance defeasance, and how can a government use it to lower its interest costs? How must it recognize a gain or loss on defeasance if it accounts for the debt in a proprietary fund? How do the GASB standards pertaining to in-substance defeasances differ from those of the FASB?

DQ2: What is an encumbrance? How does an encumbrance affect expenses and expenditures? What is the impact of encumbrance accounting on a governmental budget? Explain.

DQ3: What are the basic principles of fund accounting? When do governmental entities recognize revenue? Why is timing important in recognizing revenue?

DQ4: What is the purpose of the capital projects fund? What is the purpose of the debt service fund? What is inter-period equity? How does inter-period equity affect capital project and debt services funds?

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