Publisher's Synopsis
This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1921 edition. Excerpt: ...of matured bonded debt in volving the adoption of adequate means of redemption. The information needed as a basis of managing assets and of liquidating liabilities is discussed in detail in subsequent chapters. Responsibilities of the Government as Spending Agent. The provision that is commonly found in constitutions and in charters to the effect that no money may be drawn from the treasury except in pursuance of appropriations made by law, imposes upon the executive not only restrictions as to the amount and purpose of expenditures but also restrictions as to the application of assets and the incurrence of liabilities. No liabilities may be incurred except in connection with expenditures which are authorized by law. Consequently, no asset may be used to liquidate a liability which has not been incurred in accordance with due authority of law. To this extent, therefore, authorizations for expenditure place restrictions upon the application of assets and the incurrence of liabilities. In presenting all the facts that are needed respecting the resources and liabilities of a government, it is found expedient to prepare two exhibits: (1) A balance sheet, setting forth actual assets and actual liabilities classified in such a manner as to reflect the responsibilities that relate to proprietorship; (2) a statement of the resources and obligations of funds, showing in respect to each its estimated and actual available resources, the obligations by which these resources have been encumbered, and the unencumbered amount that is available for expenditure. The first exhibit--the balance sheet--is the subject of this chapter. The second has been treated in Chapter III. Classification of Assets and Liabilities according to Responsibilities of...
