Answer to Question #174658 in Accounting for Milan

Question

What is the account called "Expenditure-Capital Outlay"?

What is Budgetary Control?

What is Unassigned Fund Balance?

What is Revenues and Other Financing Sources?

What is Expenditures and Other Financing Uses?

Debit Cash

Credit Other Financing Sources - Bonds Issued

• What does this journal entry mean?

Answer 1

1. Expenditure-Capital Outlay is an account expenditure intended to benefit both the current and future periods, in contrast to an operating expenditure, which benefits only the current period. The term is generally restricted to mean expenditures for the purchase of fixed assets.

2. Budgetary control is the process by which budgets are prepared for the future period and are compared with the actual performance for finding out variances, if any.

3.Unassigned Fund Balance is the residual classification for the general fund. It represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund.

4. Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise. Other financial sources include a limited number of special transactions that are used to account for non-operating revenues/receipts and expenditures/disbursements.

5. Expenditures are the cost to purchase a good or service, outflows of

financial resources.Other Financing Uses transfers financial resources from one fund to another fund.

6.To record bonds issued at face value plus accrued interest. This entry records accrued interest as a debit to Cash and a credit to Other Financing Sources.