In Reconciling the Total Fund Balances of the Governmental Funds

question 46

Multiple Choice

In reconciling the total fund balances of the governmental funds to the net position of governmental activities, which of the following would be added to the net position of governmental activities?

• A) Accumulated depreciation.
• B) Premium on bonds payable.
• C) Construction work in progress.
• D) Bond interest payable.

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Definitions:

Bonus Shares

Additional shares given to existing shareholders without any extra cost, based on the number of shares they already own.

Basic Earnings

The net income divided by the weighted average number of common shares outstanding during the period, representing earnings per share.

Diluted Earnings

A measure of a company's profitability that accounts for all potential shares that could be exercised or converted into shares, often related to options or warrants.

Accounting Methods

The rules and procedures that a company follows to prepare its financial statements, including various methods for recognizing revenues, expenses, assets, and liabilities.