Assume a Government Reported $300,000 in Capital Outlay Expenditures in the Governmental

question 105

True/False

Assume a government reported $300,000 in capital outlay expenditures in the governmental fund Statement of Revenues,Expenditures,and Changes in Fund Balances.Secondly,assume depreciation of capital assets amounted to $250,000,in the governmental activities column in the Statement of Activities.Those adjustments would cause a decrease of $50,000 when preparing the reconciliation between the change in governmental fund balances to the change in net assets of governmental activities in the Statement of Activities.

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Definitions:

Current Market Value

The amount of money that could currently be received for selling an asset in the marketplace.

Par-value

The face value of a bond or the stated value of a stock, as defined in the corporate charter, which has little to do with its market value.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, taking into account its purchase price, interest payments, and terminal value.

Zero-coupon Bonds

Bonds that do not pay periodic interest payments and are instead issued at a deep discount to their face value, maturing at par.