On the Statement of Revenues, Expenditures, and Changes in Fund

question 59

Multiple Choice

On the statement of revenues, expenditures, and changes in fund balance for governmental funds, how are capital outlays reported?

• A) As a separate line item in the expenditures section of the statement.
• B) Capital outlays are allocated to the functional areas, much like depreciation.
• C) As a separate line item in the other financing sources (uses) section of the statement.
• D) Below net change in fund balances, but before beginning fund balance.

---

Definitions:

Statute of Frauds

A legal principle that certain types of contracts must be in writing and signed by the party to be charged, in order to be enforceable.

Legal Person

An entity, such as a corporation, recognized by law as having rights and obligations.

Infants

Children in the earliest stage of their lives, typically considered to be from birth to 2 years old.

Adults

Individuals who are considered legally mature and are responsible for their actions, with the age of adulthood varying by jurisdiction.