A Government Reported an Other Financing Source in the Amount

question 12

Multiple Choice

A government reported an Other Financing Source in the amount of $600,000 related to the sale of land in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances.The land had a cost of $150,000.The adjustment in the reconciliation when moving from the changes in fund balances in the Statement of Revenues,Expenditures,and Changes in Fund Balances to the change in net assets in the Statement of Activities would be:

• A) Increase of $150,000.
• B) Decrease of $150,000.
• C) Increase of $450,000.
• D) Decrease of $450,000.

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Definitions:

Accounts Receivables

Sums due to a company from its customers for products or services rendered but not yet compensated for.

Investing Activity

Operations concerning the buying and selling of long-term assets and other financial investments that do not qualify as cash equivalents.

Suppliers

Entities or individuals that provide goods or services to another entity or individual, usually in a business-to-business context.

Time Period Assumption

An accounting principle that the life of a business can be divided into discrete time periods, such as months and years, for reporting purposes.