The Reconciliations Required to Be Presented on the Face of the Governmental

question 100

Multiple Choice

The reconciliations required to be presented on the face of the governmental fund financial statements or in separate schedule immediately after the fund financial statements include:

• A) Reconciliation from the governmental fund Balance Sheet to the Statement of Net Assets.
• B) Reconciliation from the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities.
• C) Both A & B.
• D) No reconciliations are required to be submitted.

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Definitions:

Retained Earnings

The portion of a company's profits not distributed as dividends to shareholders but reinvested in the business.

Dividend

A segment of a corporation's profits given out to its shareholders, typically as cash or more shares.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and equity at a specific point in time.

Dividend Controversy

Dividend controversy revolves around the debate on whether companies should distribute profits to shareholders as dividends or reinvest them in the business.