Granof & Khumawala - 6e Chapter 2
Chapter Two
FUND ACCOUNTING
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Thought to Ponder: Chapter 2
-Thomas Jefferson
Granof & Khumawala - 6e Chapter 2
“A democratic society depends upon an
informed and educated citizenry."
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After studying Chapter 2, you should understand:
• The nature of funds
• The elements of financial statements
• The hierarchy classification of fund balances
• The three basic fund types of a state or local
government:
o Governmental funds
o Proprietary funds
o Fiduciary funds
• The main components of a CAFR
• The primary F/S issued by governments
• The difference between the fund structures and
financial reports of not-for-profits and
governmental entities
Granof & Khumawala - 6e Chapter 2
Learning Objectives
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• One company
• “Fund” used as an informal term (multiple
meanings)
oMay refer to working capital (current net
assets)
oMay refer to cash or investments available
oMay have other definitions
• The company is a single fiscal and accounting
entity
o A = L + E (“E” usually called “Owners’ Equity”)
Granof & Khumawala - 6e Chapter 2
Business
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Multiple “entities”
• “Fund” used as a formal term (single meaning)
o “A fiscal and an accounting entity with a selfbalancing set of accounts.”
• Each fund is like its own “entity”
o In other words, a fund is an entity with its own
set of books (i.e., chart of accounts , general
journal, general ledger, trial balances, and
financial statements)
Granof & Khumawala - 6e Chapter 2
Governmental
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Elements of Government Financial
Statements
Financial Statements (2007)
• Seven Key elements -Five relating to financial position
and two relating to resource flows
o Assets are resources with present service capacity
o Liabilities are present obligations to sacrifice resources
o A deferred outflow of resources is the consumption of net
assets applicable to a future reporting period
o A deferred inflow of resources is the acquisition of net
assets applicable to a future reporting period
o Net position is the residual of all elements presented in a
statement of financial position; that is the assets + deferred
outflows - the liabilities - deferred inflows.
Granof & Khumawala - 6e Chapter 2
• GASB Concepts Statement No. 4: Elements of
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Elements of Government Financial
Statements (Cont’d)
o An outflow of resources is a consumption of net assets that is
applicable to the reporting period.
o An inflow of resources is an acquisition of net assets that is
applicable to the reporting period.
Deferred Outflows of Resources, Deferred Inflows of
Resources, and Net Position (2011) requires that
governments, unlike businesses, must now report the deferred
items in a separate category. Thus, a statement of position
might be,
Assets + Deferred outflow of resources
- Liabilities – Deferred inflow of resources
= Net Position
Granof & Khumawala - 6e Chapter 2
• GAAP: GASB Statement No. 63, Financial Reporting of
• GAAP: GASB Statement No. 65,
Items Previously Reported as
Assets and Liabilities (March 2012) specifies the items that may
be classified as deferred outflows and inflows of resources.
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Based on GASB Statement No. 63, fund accounting uses the
equation
• Assets + deferred outflows = liabilities + deferred inflows + fund
balance
• In a slightly different form
Assets + deferred outflows – liabilities – deferred inflows
= fund balance.
An important distinction:
In financial statements that are prepared on a full accrual basis,
the residual amount is referred to as “net position;” in statements
that are prepared on a modified accrual basis it is referred to as
“fund balance.”
Note:
Both fund balance and net position, like owners’ equity, are
residuals—the difference between assets (and deferred outflows)
and the claims against those assets (liabilities and deferred
inflows)
Granof & Khumawala - 6e Chapter 2
FUNDS
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GASB Statement No. 54
In February 2009, the GASB issued Statement No. 54, Fund
governmental fund balance information.
• According to GASB Statement No. 54,
the fund balance (the residual in
modified accrual-based governmental
funds) is reported in a hierarchy
of classifications.
• Thus it affects only the fund balance
reported on the balance sheet of
governmental type funds.
Granof & Khumawala - 6e Chapter 2
Balance Reporting and Governmental Fund Type
Definitions, to improve the usefulness, and understandability of
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• Fund balances of governmental type funds are now to be
reported based on a hierarchy in five different classifications:
o Nonspendable
o Restricted
o Committed
o Assigned
o Unassigned
• The reporting of Reserve for Encumbrances is eliminated
• According to GASB Statement No. 54, only the Fund balance
reported on the balance sheet of Governmental type funds is
affected.
• It does not affect the reporting of net assets by proprietary or
fiduciary funds.
• It also does not affect the reporting of net assets of
governmental activities in the government-wide financial
statements.
Granof & Khumawala - 6e Chapter 2
Brief Summary (GASB Stmt. No 54)
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• Effect on Financial Statements
• The next PPT slide shows the marked up area on the
Balance Sheet of Governmental Funds which is
impacted by this stmt.
• The Fund Balance accts in the block are now presented
based on the new 5 part classification as presented in
the following two PPT slides ( Exhibit 1 & 2 presents the
reporting of Fund Balance as illustrated by GASB under
Stmt. 54).
Granof & Khumawala - 6e Chapter 2
GASB Stmt. No 54 (Cont’d)
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12
Granof & Khumawala - 6e Chapter 2
Granof & Khumawala - 6e Chapter 2
GASB Stmt. No 54 -- Exhibit 1
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Granof & Khumawala - 6e Chapter 2
GASB Stmt. No 54 -- Exhibit 2
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Fund Balance should be identified between
nonspendable resources and spendable resources
• Nonspendable resources include amounts that are
not in spendable form or are required to be
maintained intact.
o Inventories and prepaids (also includes assets held for sale
and long-term receivables)
o The principal (corpus) of a Permanent Fund
• Spendable resources is the remaining balance
and is to be reported in a hierarchy of
classification (4 categories) based on the extent
to which the government is bound by
restrictions/constraints on those funds
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GASB Stmt. No 54 (Cont’d)
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Level of Constraints (GASB 54)
• Restricted
• Committed
• Assigned
No
constraint
• Unassigned
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Most
constraint
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Spendable Resources - Restricted
Externally imposed constraints by
o creditors, bondholders,
o grant providers, contributors, or
o imposed by law through constitution or enabling legislation
.
• Enabling legislation (imposed by law) authorizes the government
to assess, levy, charge, or mandate payments of resources and
includes a legally enforceable requirement that the resources be
used only for the specific purpose.
• Thus the level of constraint on restricted fund balance is equivalent
to the level of constraint on Net Position-Restricted in proprietary
funds and the government-wide statement of net position.
• Ex. In, Table 2-5, the balances for State statute, Special
obligation, Public safety, etc are presented as FB Restricted
Granof & Khumawala - 6e Chapter 2
• Restricted (most constraint) includes amounts constrained to
specific purposes by their providers, through constitutional
provisions, or by enabling legislation.
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• Committed fund balance—here the constraints are imposed by
a formal action of the government’s highest level of decisionmaking authority (for ex. City council committing funds for
construction contracts, rainy day fund etc).
• These funds cannot be used for any other purpose unless the
government removes or changes the specified use by taking
the same formal action that originally imposed the constraint.
• Committed funds include contractual obligations for which
existing resources in the fund have been specifically
committed for use.
• The funds may also include “rainy day” or “stabilization funds.”
• Note: In contrast to fund balance that is restricted by enabling
legislation, amounts in the committed fund balance can be
redeployed for other purposes with appropriate due process.
• Ex. In, Table 2-5, assuming FB Reserved for encumbrances
is a contractual commitment, it is presented as FB
Committed.
Granof & Khumawala - 6e Chapter 2
Spendable Resources – Committed
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Assigned fund balance –Government’s intent to use the funds
for a specific purpose. Here INTENT is the key.
• Intent can be expressed by the governing body itself or another
body that has the delegated authority.
• In the General Fund, assignment conveys that the intended
use is narrower than the general purposes of the government
itself.
• Fund Balance in other governmental funds (except General
Fund) that is not restricted or committed is considered as
Assigned FB in those funds. In other words it is the residual
balance of these funds.
• Note: the authority for making an assignment does not have to
be made by the government’s highest level of decision-making
authority.
• Thus, constraints imposed on assigned amounts can be more
easily removed or modified than those that are classified as
committed.
• Ex. In, Table 2-5, the Debt Service fund (the only major fund)
has FB Assigned
Granof & Khumawala - 6e Chapter 2
Spendable Resources - Assigned
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• Unassigned fund balance –this is the residual
classification of the General Fund
• Includes amounts that are available for any purpose
• Only the GF can report this positive Unassigned FB
• For other governmental funds, this category is used to
report only a negative fund balance (i.e. when
expenditures have exceeded the revenues).
• Ex. In, Table 2-5, as explained above, the General Fund
has an Unassigned fund balance.
Granof & Khumawala - 6e Chapter 2
Spendable Resources - Unassigned
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A crosswalk
Committed
Assigned
Negative
Unassigned
Positive
Unassigned
?
?
?
x
x
x
x
x
?
?
x
x
x
?
?
?
x
x
?
?
?
?
?
?
?
NO
NO
NO
NO
x
* Nonspendable amounts associated with long-term receivables that are
restricted, committed or assigned are included in that category instead of the
nonspendable category. For permanent funds, the corpus of gifts which must be
maintained in perpetuity are designated nonspendable in governmental-type
funds but as restricted-nonexpendable in the government-wide financial
statements.
Granof & Khumawala - 6e Chapter 2
X = likely
? = possibly
NO = prohibited
Restricted
Governmental-type funds
Special Revenue Funds
Debt service funds
Capital project funds
Permanent funds
General fund
Nonspendable*
Level of Constraints (GASB 54)
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Not-for-profit
• NFP may use fund accounting internally to ensure
control of funds, but they do not report these funds
externally.
o Unrestricted
o Temporarily restricted – used for specific purpose
o Permanently restricted -explained further on later slides
• FASB regulates NFP reporting for nongovernmental
organizations and only requires 6 totals:
o
o
o
o
o
o
Total assets
Total liabilities
Total net assets
Total unrestricted net assets
Total temporarily restricted net assets
Total permanently restricted net assets.
Granof & Khumawala - 6e Chapter 2
• Classifies Net Assets into 3 groups:
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Granof & Khumawala - 6e Chapter 2
TYPES OF FUNDS AND THEIR
FOCUS
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• Full Accrual:
o Revenues recognized when earned; expenses
recognized when incurred
• Cash:
o Revenues recognized when available;
expenses/expenditures recognized when paid
• Modified Accrual:
o Revenues are recognized when measurable and
available; expenditures when incurred
Granof & Khumawala - 6e Chapter 2
Basis of Accounting
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• What is measured?
• Where is the focus of an entity?
• Economic resources measurement focus
o Report on the determination of net income, financial
position, and cash flows (i.e. capital maintenance)
o To measure operational accountability
• Current financial resources measurement focus
o Report on the inflows and outflows of current financial
resources (i.e. cash or other items expected to be
converted into cash during the current period)
o To measure fiscal accountability; meet the legal and
budget needs of government
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Measurement Focus
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Measurement
Focus
Basis of
Accounting
Government-wide
statements (GASB 34)
Economic
resources
Accrual
Governmental
fund statements
Current financial
resources
Modified accrual
Proprietary fund
statements
Economic
resources
Accrual
Fiduciary fund
statements
Economic
resources
Accrual
Granof & Khumawala - 6e Chapter 2
Measurement Focus and Basis of
Accounting
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Counties
Municipalities
Townships
School districts
Special districts
Total
3,031
19,522
16,364
12,884
37,203
89,004
Source:
U.S. Census Bureau, 2012 Census of Governments, preliminary results,
August 2012.
http://www.census.gov/govs/cog2012.
Granof & Khumawala - 6e Chapter 2
Types of Local Governments
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Activities of Government
o Core governmental services like police and fire protection,
streets, highways, etc. – Chapters 3-6. These activities are
accounted under governmental funds.
• Proprietary Activities
o Public utilities, toll roads (Sam Houston Tollway) and toll
bridges, airports (ex. Houston’s new Toyota Center, Hobby,
IAH) – Chapter 9. These activities are accounted under
proprietary funds.
• Fiduciary Activities
o Sometimes known as Trust & Agency Funds. Accounts for
resources for which the government is acting in a trustee
capacity (ex. Houston Foundation, MacGregor Parks
Endowment) – Chapter 10. These activities are accounted
under fiduciary funds.
Granof & Khumawala - 6e Chapter 2
• Governmental Activities
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Types of Funds
“Funds divide a government into units to control resources or
attain objectives, not functional departments or operations.”
o
o
o
o
o
General Fund
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Permanent Funds
• Proprietary Funds (2)
o Internal Service Funds
o Enterprise Funds
• Fiduciary Funds (2)
o Agency Funds
o Trust Funds
 Pension (and other employee benefit)
 Investment Trust Funds
 Private purpose Trust Funds
Granof & Khumawala - 6e Chapter 2
• Governmental Funds (5)
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Definition of Fund Types
• Governmental Funds
• Proprietary Funds
o Government generally makes initial contribution but
thereafter the fund is expected to “pay its own way” through
fees for services rendered. Also referred to as business-like
or commercial-type funds.
• Fiduciary Funds
o Any fund held by a government in a fiduciary capacity.
o Simply, the gov’t. holds someone else’s money in trust and
acts as a custodian. Since it is not the government’s money,
it is not expendable for the government’s own programs.
Granof & Khumawala - 6e Chapter 2
o A generic classification used by GASB to refer to all funds
other than proprietary or fiduciary
o No guarantee that the funds will be reimbursed for services
rendered
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Granof & Khumawala - 6e Chapter 2
GOVERNMENTAL FUNDS
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Overview
• Basis of Accounting:
o Modified Accrual
• Measurement Focus:
 Other names: “financial flow” focus or spending focus
 Only current assets and liabilities are generally included on
their balance sheet (i.e. Capital assets and long-term liabilities
are not included)
 Reports expenditures (not expenses) of appropriations
• Fund Balance (net current assets) measures
“available spendable resources”
o Fund Balance = Current Assets – Current Liabilities
o Increased by revenues and other financing sources
o Decreased by expenditures and other financing uses
o Governmental fund operating statements present these
increases and decreases in net current assets.
Granof & Khumawala - 6e Chapter 2
o Current Financial Resources
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Required financial statements
• Statement of Revenues, Expenditures, and Changes in
Fund Balances
• Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities at the
government-wide level.
Granof & Khumawala - 6e Chapter 2
• Balance Sheet
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• The operating fund of the government-embraces
most major governmental functions
• Accounts for all resources that are not required to
be accounted for in other funds; in essence, it
accounts for all unassigned resources.
• Only one per government and is the most significant
single fund
• General Activities of city
government (ex. Fire, police)
Granof & Khumawala - 6e Chapter 2
(1) - General Fund (GF)
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• Accounts for financial resources that are restricted or
committed (does not include assigned) to expenditure for
specific purposes other than debt service or capital
projects.
• Accounting and budgeting usually identical to GF
• Ex. City of Houston maintains over 17 SRF
o Examples include
 Public Safety Special Fund (9-1-1 Emergency Network)
 Public Works Special Fund
 Health and Housing Special Fund
 Parks and Recreation Special Fund
 Other Special Revenue Fund (Cable Television)
Granof & Khumawala - 6e Chapter 2
(2) - Special Revenue Funds (SRF)
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• Accounts for financial resources that are restricted,
committed, or assigned to expenditure for capital
outlays.
• Ex. Astrodome, Toyota Center, GRB
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(3) - Capital Projects Funds (CPF)
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• Accounts for financial resources that are restricted,
committed, or assigned for the payment of interest
and principal on long-term debt.
• Ex. City of Houston as of 6/30/2012
o Total fund balance in DSF
$148,174,000.
o Total long-term liabilities
$15.16 Billion (for FY 2011- $14.8 B)
Granof & Khumawala - 6e Chapter 2
(4) - Debt Service Funds (DSF)
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Accounts for resources provided that are legally
restricted so that only earnings, not principal, may
be used to support the government’s programs.
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(5) - Permanent Funds
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Granof & Khumawala - 6e Chapter 2
PROPRIETARY FUNDS
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(1) - Internal Service Funds (ISF)
(1) other departments of the same government
(2) other governments for a charge on a cost reimbursement basis
• Examples include central stores, central computing,
motor pools, and printing.
• ISF are reported as governmental activities in the
government-wide statements because they primarily
benefit the government.
o ex. City of Houston’s employees Health Benefits and
o Long -Term disability.
These funds are covered in depth in Chapter 9.
Granof & Khumawala - 6e Chapter 2
• Accounts for activities in which goods are services are
provided to
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•
•
•
•
Accounts for activities in which goods or services
are provided to the general public for a charge
Reported as business-type activities in the
government-wide financial statements
Examples include electric and water utilities,
airports, parking garages, transportation systems,
and liquor stores
Ex. City of Houston’s EF
o
o
o
o
Airport System
Convention & Entertainment facilities
Combined Utility system
Non-major Enterprise funds (Houston Area Water
Corporation, Parking Management)
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(2) - Enterprise Funds (EF)
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Overview
• Basis of Accounting:
o Full Accrual
o Operated like a “normal for-profit” business
• Measurement Focus:
o Economic Resources
 All assets and liabilities (both current and noncurrent) are
included in the balance sheet
 Accounts for expenses (not expenditures)
--Depreciation expense is reported
• Fund Equity (Net Position)
o Net Position = Assets – Liabilities
o Increased by revenues and other financing sources
o Decreased by expenses and other financing uses
o Segregated into contributed capital and retained earnings
components
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Ex. City of Houston operates its Airports under a Proprietary fund
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Similar to those of for-profit entities
• Statement of Net Position
• Statement of Revenues, Expenses, and Changes
in Net Position (i.e. operating statement)
• Statement of Cash Flows
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Required Financial Statements
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Granof & Khumawala - 6e Chapter 2
FIDUCIARY FUNDS
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(1) - Agency Funds
o Agent - Government holds assets on behalf of another
government
• Accounting is simple: assets = liabilities.
o No revenue and expense to accrue
o No fund equity account
• Examples are tax agency funds, certain special
assessment funds, and pass-through agency funds
Granof & Khumawala - 6e Chapter 2
• Accounts for financial resources in which the
government is acting in an “agency” capacity
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Overview
o Therefore, the government cannot include these funds in the
government-wide statements.
• Basis of Accounting:
o Full Accrual
• Measurement Focus:
o Economic Resources
Granof & Khumawala - 6e Chapter 2
• Both Trust funds and Agency funds account for
assets held by the City in a trustee capacity or as an
agent for individuals, private organizations, other
governments, and/or other funds.
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Required Financial Statements
o Only Trust Funds may have a change in net position
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• Statement of Fiduciary Net Position
• Statement of Changes in Fiduciary Net Position
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• Each trust is classified for accounting measurement
purposes as either a governmental fund or a
proprietary fund (ex. Houston Firefighters Relief and
Retirement and Police Officers’ Funds).
• Funds can be either expendable or nonexpendable.
• Three types of trust funds
(i) Pension (and other employee benefits)
Trust Funds (one or more)
(ii) Investment Trust Funds
(iii) Private Purpose Trust Funds
Granof & Khumawala - 6e Chapter 2
(2) - Trust Funds
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• Accounts for financial resources in which the
government (or other designated trustee) is acting in
a trustee capacity for the employees of the
government to provide retirement benefits.
• Uses business-type accounting practices.
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Pension (and other employee
benefits) Trust Fund
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• Accounts for external investment pools in which the
assets are held for other (external) governments,
along with funds of the sponsoring government
• Reports the assets, liabilities, net assets, and
changes in net assets corresponding to the equity of
the external participants
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Investment Trust Funds
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• Encompasses all trust funds other than pension and
investment trust funds
• Accounts for financial resources in which the
government is acting in a trustee capacity for the
benefit of individuals, other organizations, or other
governments (e.g., an endowment in which the
principal amount must be kept intact)
• Accounting is virtually identical to that for an
enterprise fund.
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Private-purpose Trust Funds
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Basic Financial Statements - and Management’s
Discussion and Analysis – for State and Local
Governments
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GASB Statement No. 34
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Government – wide Statements
• Addresses questions that have not been easily answered by
fund accounting
• “What do government services really cost, e.g., public safety
or recreation?”
• “How much debt for current services are we shifting to the
next generation?”
• “ How much of the cost of government is borne by citizens in
the form of general revenues?”
Granof & Khumawala - 6e Chapter 2
1) Statement of Net Position
2) Statement of Activities
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Reporting Model-Statement 34
o Major funds are those in which total assets plus deferred outflows
of resources, liabilities plus deferred inflows of resources,
revenues, or expenditures/expenses are at least
o 10 percent of the relevant fund category (governmental or
enterprise) and
o 5 percent of the corresponding total for all governmental and
enterprise funds combined
• Non-major funds are combined into the column ‘‘other
governmental funds” and presented in a single column
by category
o Concept does not apply to fiduciary funds and internal service
funds
Granof & Khumawala - 6e Chapter 2
Fund Presentation
• Major funds
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Comprehensive Annual Financial
Report - CAFR
o Introduction section
o Financial section
o Statistical section
• The minimum requirements for general purpose
external reporting include:
• MD&A
• Basic financial statements
• RSI other than MD&A
Granof & Khumawala - 6e Chapter 2
• The CAFR is the recommended annual report of a
governmental unit. It has 3 sections.
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• Every government should prepare interim
statements as needed for sound management
• The Government Finance Officers Association
(GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City of
Houston for CAFR for the fiscal year ended June 30,
2012.
• Note: Please also refer to Chapter 1 slides on CAFR.
Granof & Khumawala - 6e Chapter 2
Comprehensive Annual Financial
Report - CAFR
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CAFR
o Letter of transmittal – presents overview of financial and
economical conditions. General information about how the
government is organized.
• Financial Section:
o
o
o
o
MD&A – brief overview of financial performance of the government.
Basic financial statements and Notes
Required Supplementary Information
Combining and individual fund financial statements.
• Statistical section:
Granof & Khumawala - 6e Chapter 2
Reviewing again, a CAFR has
• Introduction section:
o Contains current and historical data. Supplemental information to
the basic financial statements
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Component Units (CU)
(1) PG
appoints a voting majority of unit’s governing body
(2) A majority of unit’s governing body is composed of PG’s officials
(3) The PG is able to “impose its will” upon the unit
(4) Unit can cause the PG financial benefits or burdens
• If it meets these criterion, then unit is a CU of PG.
• Two Presentations of CU
– CU consolidated with PG in government-wide statements
Presented this way if CU “provides services exclusively or almost
exclusively for the city” (see the City of Houston CAFR)
(2) Discrete – CU shown in a separate column in government-wide
statements
(1) Blended
Granof & Khumawala - 6e Chapter 2
• Entities that are economically intertwined with the government
albeit legally separate.
• Criteria to determine whether a primary government (PG) is
financially accountable for another government.
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This topic is discussed in depth as part of Ch. 11.
Granof & Khumawala - 6e Chapter 2
NOT-FOR-PROFITS REVISITED
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NFPs classify and report both current and non current
assets & liabilities based on three different donor
mandated restriction categories (i.e. 12 different categories
(2x2x3 = 12)).
(1) unrestricted
(2) temporarily restricted
(3) permanently restricted
Granof & Khumawala - 6e Chapter 2
Financial Reporting
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• “Current unrestricted” -- Analogous to general fund
• “Current temporarily restricted” -- Analogous to special revenue funds
• “Current permanently restricted” -- Doesn’t exist because it would
mean you have available resources you can never use
• “Noncurrent unrestricted”
o Property, Plant, and Equipment used for operations
o Accounts Receivables which, once collected, may be used
o Long-term Liabilities
• “Noncurrent temporarily restricted”
o Assets analogous to capital projects fund
o Accounts Receivable which, once collected, are restricted for a
specific use or time period
o Liabilities analogous to debt service fund and fiduciary funds
• “Noncurrent permanently restricted”
o Assets analogous to permanent fund
o All Liabilities are either unrestricted or temporarily restricted never
permanently restricted
Granof & Khumawala - 6e Chapter 2
Classification of Assets and Liabilities
(12 categories)
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• Fund accounting is an effective means of establishing control and
accountability over restricted resources.
• Governments normally maintain five types of governmental funds to
account for their operating and financing activities.
• Governments maintain two types of proprietary funds to account for their
business-type activities and two types of fiduciary funds to account for
resources that they hold for the benefit of parties other than themselves.
• Fund financial stmts. for governmental funds utilize the modified accrual
basis of accounting and a current financial resources measurement focus.
• Fund Balance in the fund financial stmts. has to be presented based on a
hierarchy of fund balance classification based on GASB Std. # 54
• GASB Std. # 34 requires both government-wide financial statements and
fund financial statements.
• GASB in Concepts Stmt. # 4 provides definitions and explanations of seven
key elements
• Government-wide financial statements and fund financial statements for
proprietary and fiduciary funds follow the full accrual basis of accounting
and the economic resources measurement focus (similar to commercial
accounting).
Granof & Khumawala - 6e Chapter 2
Summary
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