Posted: July 1st, 2015
Read the case study about City of Yorba Linda, California at page 750 in Merchant and Van der
Stede (2012), Management Control Systems, Prentice Hall1. After reading the case study, answer
the following questions:
1. The City of Yorba Linda uses fund accounting. What is fund accounting and what are its
strengths and weaknesses as compared to standards accrual accounting for use in a
municipality such as Yorba Linda?
2. Did the City of Yorba Linda expect to have a good year in fiscal year 19911992? How do
you judge?
-Tables, graphs etc. should be shown on the Appendix
Reference
-Merchant and Van der Stede (2012), Management Control Systems, Prentice Hall. Chap. 17
-Granof and Khumawala (2011), Government and NotforProfit Accounting. Chap. 2 p. 3744;
Chap. 11 p. 473481.
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