Which of the Following Items Would Not Appear in a Statement

question 14

Multiple Choice

Which of the following items would not appear in a statement of revenues, expenditures, and changes in fund balances prepared for a governmental fund?

• A) Depreciation expense.
• B) Interfund transfers in.
• C) Revenues from property taxes.
• D) Expenditures for employee salaries.

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Definitions:

EPS

Earnings Per Share (EPS) is a financial ratio calculated by dividing the profit attributable to common shareholders by the average outstanding common shares, indicating the company's profitability on a per-share basis.

Primary Market Transaction

The sale of new securities directly from the issuer to investors, often via public offerings or private placements.

Investment Banker

A financial professional who advises companies on capital raising, mergers, acquisitions, and other major corporate transactions.

Agency Problems

Agency Problems arise when there's a conflict of interest between the principals (owners or shareholders) and agents (managers or executives) of a company, leading to potentially suboptimal decision-making.