In Reconciling Between the Governmental Fund and Government-Wide Statements, Capital

question 51

True/False

In reconciling between the governmental fund and government-wide statements, capital assets acquired by a governmental fund are deducted from fund balance-governmental funds to arrive at net position of governmental activities.

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Definitions:

Annually

Occurring once every year or relating to a period of one year.

Current Yield

Yearly returns in the form of interest or dividends as a ratio of the security's present price.

Coupon

A coupon is the interest payment made to bondholders, usually on an annual or semi-annual basis.

Market Rate of Interest

The prevailing rate at which interest is paid by borrowers for accessing funds in the financial market.