[nib]

hello friends ,

I am not able to u/s meaning of II)) Cash outflow from a city utility representing payments in lieu of property taxes .

does it means “city utility paying out cash for property taxes ” .But then why the word “” in lieu “” used . As per my knowledge “”In Lieu”” means “” instead of or in place of “” .Why city utility pays cash in place of property tax …..????

pls help me to u/s

.

Which event(s) should be included in a statement of cash flows for a governmental entity?

I))Cash inflow from issuing bonds to finance city hall construction

II)) Cash outflow from a city utility representing payments in lieu of property taxes

A. I only

correct =B. II only

C. Both I and II

D. Neither I nor II

explanation

---

>

The basic government-wide financial statements include the statement of net position and the statement of activities, but not a cash flow statement. The fund financial statements include statements of cash flows for proprietary funds but not for governmental funds. The proprietary funds, except for the internal service funds, make up the business-type operations of a government. A city-owned utility is a prototypical example of a business-type activity that would be recorded in a proprietary fund. In contrast, construction of a city hall building is a general government operation that would be recorded in a governmental fund.

[nib]

REPOST
hello friends ,

I am not able to u/s meaning of II)) Cash outflow from a city utility representing payments in lieu of property taxes .
does it means “city utility paying out cash for property taxes ” .But then why the word “” in lieu “” used . As per my knowledge “”In Lieu”” means “” instead of or in place of “” .Why city utility pays cash in place of property tax …..????

pls help me to u/s
.

Which event(s) should be included in a statement of cash flows for a governmental entity?

I))Cash inflow from issuing bonds to finance city hall construction
II)) Cash outflow from a city utility representing payments in lieu of property taxes

A. I only
correct =B. II only
C. Both I and II
D. Neither I nor II

explanation———->

The basic government-wide financial statements include the statement of net position and the statement of activities, but not a cash flow statement. The fund financial statements include statements of cash flows for proprietary funds but not for governmental funds. The proprietary funds, except for the internal service funds, make up the business-type operations of a government. A city-owned utility is a prototypical example of a business-type activity that would be recorded in a proprietary fund. In contrast, construction of a city hall building is a general government operation that would be recorded in a governmental fund.
–

[Author]

Replies