For the Following Items That Require Reconciliation Between Governmental Funds

question 39

Essay

For the following items that require reconciliation between governmental funds financial statements and governmental activities financial statements at the government-wide level according to GASB standards, indicate which is the best appropriate terms.
(A) Always be subtracted from fund balances-governmental funds.
(B) Always be added to fund balances-governmental funds.
(C) May be added to or subtracted from fund balances-governmental funds in arriving at net position of governmental activities.
________ 1. Capital assets used in governmental activities
________ 2. Long-term liabilities that are not payable in the current period
________ 3. Net position of internal service funds that are primarily governmental in nature
________ 4. Accrued interest payable not due in the current period

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Definitions:

World Bank

A bank that lends (and guarantees loans) to developing countries to assist them in increasing their capital stock and thus in achieving economic growth.

Last-Resort Lending Agency

An institution, typically a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky.

Natural Resources

Resources that are found in nature and can be used for economic gain, such as minerals, forests, water, and fertile land.

Economic Growth

An increase in the production of goods and services in an economy over a period, often measured by the rise in the gross domestic product (GDP).