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Governmental and Nonprofit Accounting

True/False

1. Program revenues and general revenues are not distinguished on the government-wide statement of activities under GASBS 34.

2. Fund equity of the General Fund at the end of the fiscal year is defined as the difference between its assets and its liabilities.

3. Interfund transfers and debt issue proceeds received by the General Fund would be recorded as other financing sources.

4. All purchases of goods and services by a General Fund and all interfund transfers are recorded as Expenditures.

5. GASBS 34 requires that a combined statement of revenues, expenditures, and changes in fund balances?budget and actual be presented and that the statement include the General Fund, and major special revenue funds for which annual budgets have been legally adopted.

6. All decreases in fund financial resources, other than for repayment of fund liabilities, are termed "expenditures."

Solution Preview

1. False. Program revenues appear on the top half of the statement of activities and are subtracted from expenses of each function in arriving at the net cost of operations for governmental services. General revenues, on the other hand, appear on the lower half of the statement of activities and are in one column as a subtraction from the net cost of government ...

Solution Summary

Using the textbook, Accounting for Governmental and Nonprofit Entities 13/e by Wilson and Kattelus, the questions were answered from a teacher's perspective. Each answer also has an explanation to help clarify the answer itself.

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