When Converting from Governmental Fund Financial Statements to the Governmental

question 114

True/False

When converting from governmental fund financial statements to the governmental activities column of the government-wide statements, the proceeds from the sale of capital assets which were listed as an "other financing source" are eliminated and the gain or loss is recorded when preparing the government-wide statements.

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Definitions:

Necessary Condition

A prerequisite that must be present for a certain effect or outcome to occur.

Sufficient Condition

A condition that, if satisfied, guarantees the occurrence or truth of another condition but isn't necessarily required for the latter's occurrence.

Method of Difference

A scientific research method used to identify the cause-effect relationship between variables by changing one variable at a time while keeping others constant.

Causal Factor

An element or condition that brings about or contributes to producing a particular outcome or effect.