The module that handles payroll processing is ...

[Cooldude101]

The module that handles payroll processing is ___________________ ___________.
 Fill in the blank(s) with correct word

Question 2

(Discussion problem on entity and GAAP hierarchy)
 
  A large private bus company in Empire City went bankrupt. At Empire City's request, the state legislature established a legally separate public benefit corporation named Metro City Bus.
 
  In the law establishing Metro City Bus, Empire City was authorized to appoint Metro's entire governing body, and Metro was authorized to issue tax-exempt debt to assume the assets of the private bus company.
 
  When Metro City Bus went to prepare its financial statements, two questions were raised. Was Metro City Bus a government? And if it were a government, how should it prepare its cash flow statement? Research showed that, when the bus company was a private organization, it followed FASB Statement No. 95, which required cash flow statements to be prepared using a particular format. However, GASB Statement No. 9 did not approve the use of FASB Statement No. 95, and instead required governmental enterprises to prepare cash flow statements using a different format. An article published in the Journal of Accountancy suggested that all business-type activities, private or governmental, ought to adopt FASB Statement No. 95.
 
  Required:
   a. Discuss whether Metro City Bus is or is not a governmental entity. What are the specific factors in this situation that cause Metro to be one or the other?
   b. Discuss whether Metro City Bus should prepare its cash flow statements using the FASB format or the GASB format. What are the factors that affect your conclusion?

[ktidd]

Answer to Question 1

human resources (HR)
HR
human resources

Answer to Question 2

a. Metro City Bus is a governmental entity because it was established by law as a public benefit corporation. Also, its governing board is appointed by government officials and it has the power to issue tax exempt debt.
b. Metro City Bus must prepare its cash flow statements using the format prescribed by the GASB. GASB Statements and Interpretations rank highest in the hierarchy of generally accepted accounting principles for state and local governments. Because the GASB issued a specific Statement for preparing cash flow statements (GASB Statement No. 9), that Statement must be followed rather than the FASB statement on cash flows. The Journal of Accountancy article has no standing in this situation.