How Do the Balance Sheet and Statement of Revenues, Expenditures

question 67

Multiple Choice

How do the balance sheet and statement of revenues, expenditures, and changes in fund balances of governmental funds differ from the financial statement presentation for the governmental activities in the government-wide statement of net assets and statement of activities?(1) Internal service funds are not included in the fund financial statements of governmental funds but could be reported in the governmental activities of government-wide financial statements.(2) The economic resources measurement basis is used for fund financial statements of governmental funds and the current financial resources measurement basis is used for governmental activities in the government-wide financial statements.(3) Modified accrual accounting is used for fund financial statements of governmental funds to time revenues and expenditures and accrual accounting is used for governmental activities of government-wide financial statements.(4) The financial statements of governmental funds for fund financial statements are the same as governmental activities in government-wide financial statements but with different titles of the financial statements.

• A) 1 and 2.
• B) 2, 3, and 4.
• C) 1, 2, and 3.
• D) 1 and 3.
• E) 1, 2, 3, and 4.

---

Definitions:

Endoplasmic Reticulum

A network of membranes within the cytoplasm of cells, involved in protein and lipid synthesis.

Mitochondrion

A mitochondrion is a membrane-bound organelle found in the cytoplasm of eukaryotic cells, crucial in energy production through the process of cellular respiration.

Plasma Membrane

The lipid bilayer that encloses the cytoplasm of a cell, controlling the movement of substances in and out of the cell.

Endoplasmic Reticulum

A network of membranous tubules within the cytoplasm of a cell, involved in protein and lipid synthesis, and detoxification processes.