If a Primary Government Has an Equity Interest in a Joint

question 43

Multiple Choice

If a primary government has an equity interest in a joint venture, the net investment (total equity interest) is reported as

• A) An asset of either governmental or business-type activities, as appropriate, in the government-wide statement of net position.
• B) An asset of the General Fund in the governmental funds balance sheet.
• C) A liability of either governmental or business-type activities, as appropriate, in the government-wide statement of net position.
• D) A Permanent Fund in the governmental funds financial statements.

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Definitions:

Marginal Productivity

The change in output resulting from employing one more unit of a particular input, keeping all other inputs constant.

Income Distribution

Refers to how a nation’s total GDP is distributed amongst its population.

Equilibrium Quantity

The level of output at which the demand for a product matches its supply, marking a state of balance in the market.

Equilibrium Price

The price point in a market at which the supply of goods matches demand, leading to a stable market condition.