Converting the Governmental Fund Balance Sheet to a Government-Wide Statement

question 14

Multiple Choice

Converting the governmental fund balance sheet to a government-wide statement of net assets requires which of the following activities?
1) Add general fixed assets, net of accumulated depreciation
2) Add general long-term debt, using the effective interest method
3) Eliminate the assets and liabilities of most internal service funds (those whose primary customer is the general government)
4) Eliminate the fund balance and classify the net assets into invested in capital assets, restricted net assets, and unrestricted net assets

• A)1, 2, 3, 4
• B)1, 3
• C)1, 2, 4
• D)3, 4

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Definitions:

Weber's Law

A principle in psychophysics stating that the smallest change in a stimulus that can be detected is a constant proportion of the baseline stimulus.

Noticeable Difference

The smallest change in a stimulus that can be detected by the senses.

Minimum Change

The least alteration that can occur in a situation or in the value of a variable.

Absolute Threshold

The minimum intensity of a stimulus at which it can be detected by an individual at least 50% of the time.