In Reconciling the Net Change in Fund Balances to the Change

question 34

Multiple Choice

In reconciling the net change in fund balances to the change in net position of governmental activities which of the following would be added to the change in net position of governmental activities?

• A) Issuance of long-term debt.
• B) Construction of capital assets.
• C) Accrual of interest expense.
• D) Depreciation expense.

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Definitions:

Feelings of Inequity

Feelings of inequity occur when individuals perceive that they are not being treated fairly in comparison to others, which can affect motivation and satisfaction.

Negative Inequities

Situations in which individuals perceive that their contribution to an endeavor is not being fairly compensated.

Equitably Administered

Managed or governed in a fair and impartial manner, ensuring justice and equality in treatment and services.

Equity Theory

A theory in social psychology that explains how individuals perceive fairness in the distribution of resources and rewards in relation to others.