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:

Monopoly

Monopoly is a market structure characterized by a single seller selling a unique product in the market, facing no competition.

One Buyer

A market condition known as a monopsony, where there is only one buyer for a particular product or service, giving that buyer significant control over prices.

Marginal Revenue

The extra revenue obtained from the sale of an additional unit of a product or service.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.