Which of the Following Is True Regarding Government-Wide Financial Statements

question 93

Multiple Choice

Which of the following is true regarding Government-wide financial statements?

• A) Prior year data must be presented.
• B) A Statement of Cash Flows is not required for Government-wide statements.
• C) Depreciation may only be reported as a charge in total to the general government.
• D) Fiduciary activities are only reported if they qualify as a major fund.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds; this expense is reported on the income statement during the period in which the borrowing occurs.

Straight-Line Method

A method of calculating depreciation of an asset by evenly spreading its cost over the expected useful life.

Semiannual

Occurring twice a year; a rephrasing of Semiannual Interest focusing on the period rather than the transaction.

Interest Expense

The cost incurred by an entity for borrowed funds, which can be a bank loan, bond, mortgage, or other forms of debt financing.