Ch 5 Lab Assignment: Using the CAFR for the entity that has been assigned to you(I am assigned no New Mexico State ), answer items 1 - 9 of the continuing problem on pages 227 and 228 of the Granof...

ACCOUNTING
Table of Contents
Part 1    2
Ex 5-9    2
Ex 5-10    3
Ex 5-11    5
Part 2    9
Reference List    10
1.  The NewMexicostate classifies its governmental expenses and expendituresby functionnot by object..The classifications of expenditure of government in both the government‐wide and the fund statements are approximately the same (Balakrishnan, Watts&Zuo 2016).
2. The largest expenditure of the city for the fiscal year 2014 is Public safety. The expense on public safety involved an amount of $528.67 million. From 2008 to 2013 this increased by $31.3 million. In order to know about the effectiveness ofthe city in providing this safety service, qualitative information is required. The information should include datarelated to people’s satisfaction along with crime rate and otherstatistics.
3. Major difference between the government expenditure and government expenditure lies in the treatment of capital assets and long term debts in the books of accounts. As commented by Ball, Grubnic & Birchall (2014), in the government wide statements reports depreciation. On the contrary the government fund statement reports capital asset acquisitions. Bonds or proceeds are not reported in government wide statements. On the contrary government fund statement reports them.
    
4. Government uses the consumption method of accounting the inventories. Yes, the city maintains a fund balance-non separable amount of inventories indicating that the funds is not represented as “available spendable resources’’ (Breivik, 2016).
5.Prepayment expenditures which include insurance or other expenses may be allocated over benefited period or accounted for only in current period. Under consumption method, balance in account reported as an asset.
6.The general fund madetransfers to the non-major governmental and non-major enterprise funds. According to Hribar, Kravet, & Wilson (2014), general fund receives transfers from mainly the Mexican Energy fund and the Mexican Water Utility fund.
7. On the Balance Sheet of Governmental Funds the city reports the fund balancenon-spendable for amounts related to inventories and prepaid items. Outstandingencumbrances are presented as fund balance committed, since it represents acommitment for goods or services on order. Other commitments by the City councilthat are outstanding are presented as fund balance assigned.
8. As commented by Libby (2017), depreciation is not normally reported in government-widestatements as an expense. The additional notes attached with the financial statements indicate that calculation of depreciation.
9. The major other financing sources and uses that a government entity reports in the general fund is mentioned in this section.
Sources
· Proceeds of long‐term debt
· Proceeds from the sale of capital assets
· Present value of liabilities created by capital leases (Mikes &Morhart 2017).
· Nonreciprocal transfers‐in
Uses
· Payments for bondsare done to theagents who perform accounting for repayment of long‐term...