On the Statement of Revenues, Expenditures, and Changes in Fund

question 59

Multiple Choice

On the statement of revenues, expenditures, and changes in fund balance for governmental funds, how are capital outlays reported?

• A) As a separate line item in the expenditures section of the statement.
• B) Capital outlays are allocated to the functional areas, much like depreciation.
• C) As a separate line item in the other financing sources (uses) section of the statement.
• D) Below net change in fund balances, but before beginning fund balance.

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Definitions:

Special Journals

Accounting books used to categorize and record specific types of transactions such as sales, purchases, cash receipts, and cash disbursements, streamlining the accounting process.

Record and Post

The process of recording transactions in the journals and subsequently posting them to the ledger accounts.

Special Journals

Accounting journals designed for the repeated recording of specific types of transactions, such as sales or purchases, to streamline the accounting process.

Cash

A form of liquid asset that represents the currency that a business or individual can immediately access and use for transactions.