Answer each of the following questions in 250-300 words.
Q.1 What is the revenue recognition criteria used in government entities? What are some examples of government sources of revenue? How are these sources accounted for?
Q.2 What is an interfund transfer? Why would a government entity transfer money from one fund to another? How are interfund transfers reported on a financial report?
Q.3 How can a government entity prepare government-wide statements using the fund statements? What is a governmental reporting entity?
Q.4 For what types of activities are internal service funds used to account? Provide several examples. Is a government required to account for the activities you cite in an internal service fund, or may it account for them instead in its general fund?