Which of the Following Would Be Reported on the Operating

question 8

Multiple Choice

Which of the following would be reported on the operating statement of a governmental fund?

• A) The liability for the annual obligation to the employee retirement plan.
• B) Depreciation expense.
• C) Resources received for services to be provided in future periods.
• D) Revenue related to prior periods.

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Definitions:

Security

A financial instrument representing an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Finance Lease

A type of lease agreement in which the lessee effectively obtains ownership of the asset by the end of the lease term, usually involving payment of the asset's full value over time.

Lessee

A person or entity who leases property or equipment from another, the lessor, under a lease agreement.

Right-Of-Use Asset

An asset that represents a lessee's right to use an underlying asset for the lease term under an agreement.