What Amount of Gain/loss Should Be Reported in the Government-Wide

question 65

Multiple Choice

What amount of gain/loss should be reported in the government-wide financial statements?

• A) $0.
• B) $3,000 gain.
• C) $3,000 loss.
• D) $7,000 gain.

---

Definitions:

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.

Statement of Net Position

The Statement of Net Position is a financial report that details the assets, liabilities, and net worth (equity) of an entity at a specific point in time, akin to a balance sheet in the private sector.

Noncurrent Liabilities

Long-term financial obligations a company owes that are not due for repayment within the next 12 months, such as long-term loans and bond issues.

Capital Assets

Long-term assets acquired or owned by a company or individual, anticipated to be used for more than one year, and intended for the operation or investment purposes.