Which Financial Statement May Be Presented as Required Supplementary Information

question 5

Multiple Choice

Which financial statement may be presented as required supplementary information?

• A) Government-wide statement of cash flows.
• B) General Fund and major Special Revenue Funds statement of revenues, expenditures, and changes in fund balances-budget and actual.
• C) Proprietary fund statement of cash flows.
• D) Discretely presented component units statement of net position.

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Definitions:

Variable Overhead

Costs that fluctuate with the level of production or activity, such as utilities and raw materials expenditures.

Line-item Budgets

Budgets that list individual sources of income and expenses, providing a detailed financial overview for monitoring and planning.

Flexible Budgeting

An approach in budgeting that allows for adjusting budget allocations based on varying levels of activity or output.

Unfavorable Variance

A situation where actual costs exceed the standard or budgeted costs, often indicating inefficiencies or increased expenses.