In Order to Convert the Governmental Fund Statement of Revenues

question 2

Multiple Choice

In order to convert the governmental fund statement of revenues, expenditures, and changes in fund balances to a government wide statement of activities, which of the following activities is necessary?
1) Eliminate capital outlay expenditures
2) Reclassify revenues between program revenues and general revenues
3) Record bad debt expenses
4) Convert revenues from the economic flow of resources accrual basis to the current financial resources modified accrual basis

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

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Definitions:

Economic Growth

Economic growth refers to an increase in the productive capacity of an economy, evidenced by a rise in national income, goods, and services over a period of time.

Technology Advances

The progression and innovation in technology that improve efficiency, productivity, and the quality of life.

Additional Resources

Resources available in addition to those already being used or allocated, often referring to economic or educational assets.

Factors Of Production

The inputs required for the creation of goods or services, typically classified into labor, capital, and natural resources.