Which of the Following Is True Regarding the Governmental Fund

question 49

Multiple Choice

Which of the following is true regarding the governmental fund statements?

• A) The Governmental Funds Balance Sheet does not reflect capital assets or long-term debt.
• B) The Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances reports columns for major funds, non-major funds in total, and total.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Compounded Annually

Refers to the process of earning interest on both the initial principal and the accumulated interest from previous periods, calculated once per year.

Future Value

The estimated value of an investment or loan including interest or dividends, at a specific future date.

Ordinary Annuity

A series of matching financial discharges made at interval ends throughout a fixed term.

Compounded Monthly

The process of adding interest to the initial amount of a loan or deposit on a monthly basis, causing the total amount to grow at an increasing rate.