In Reconciling Between the Governmental Fund and Government-Wide Statements, Capital

question 51

True/False

In reconciling between the governmental fund and government-wide statements, capital assets acquired by a governmental fund are deducted from fund balance-governmental funds to arrive at net position of governmental activities.

---

Definitions:

NCI Indirect Ownership Interest

Refers to the portion of equity in a subsidiary attributed to non-controlling interests, based on their indirect ownership stake.

Indirect Ownership Interests

Refers to a situation where an entity owns an interest in another entity through an intermediary rather than directly.

Tiered Corporate Group

A hierarchical structure where a parent company controls subsidiary companies, which in turn may control their own subsidiaries, creating multiple levels of entity relationships.

Control

The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, often through ownership of a majority of voting rights.