GASB Establishes That the Financial Reporting Entity Is the Primary

question 64

Essay

GASB establishes that the financial reporting entity is the primary government together with its component units. Define primary government and component unit.

Account for the recovery of previously written-off bad debts.

Implement the percent of sales method to estimate bad debts expense.

Calculate the maturity value of notes receivable and account for the interest revenue.

Understand the principles of accounts receivable and the allowance method.

---

Definitions:

Disposable Income

The monetary flexibility households have for saving and spending after deducting income taxes.

Consumption

The use of goods and services by households, constituting a primary component of economic activity.

Disposable Income

Funds permissible for households' usage in saving and spending post the accounting of income taxes.

Disposable Income

The net income available to households or individuals after accounting for taxes, which can be spent on consumption or savings.