Which of the Following Statements Concerning the Reporting of Internal

question 63

Multiple Choice

Which of the following statements concerning the reporting of internal balances by a government at the end of its fiscal year is True?

• A) The internal balances amounts reported in the balance sheet columns represent activity among governmental funds.
• B) The internal balances amounts reported in the statement of net position columns represent activity between governmental activities and business-type activities.
• C) The internal balances amounts are reported in both the asset and liability sections on the statement of net position.
• D) The internal balances amounts reported represent the difference between interfund transfers in and interfund transfers out.

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Definitions:

GDP Deflator

An index that measures the change in prices of all new, domestically produced, final goods and services in an economy over a period of time.

Inflation Rate

The magnitude of price escalation for goods and services across the board, causing a drop in consumer purchasing prowess.

Inflation Rate

The percentage increase in the general price level of goods and services in an economy over a given period, often measured annually.

GDP Deflator

An assessment tool for the prices of all new, domestically created, final goods and services in an economy.