A Government's Statement of Revenues,Expenditures,and Changes in Fund Balances Reflected

question 94

Multiple Choice

A government's Statement of Revenues,Expenditures,and Changes in Fund Balances reflected proceeds of bonds in the amount of $1,000,000.That statement also reflected expenditures for debt service in the amount of $3,000,000,including $2,600,000 for principal payments.Assuming no other changes,the effect,when moving from the change in fund balances in the governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances to the change in net assets for governmental activities in the Statement of Activities would be a:

• A) $1,000,000 increase.
• B) $1,000,000 decrease.
• C) $1,600,000 increase.
• D) $1,600,000 decrease.

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Definitions:

Metallic

Pertaining to metals, their properties, characteristics, or appearance.

Necessary Condition

A condition that must be present for an event or statement to be true or to occur.

Causal Factor

An element or condition that directly influences the occurrence of an event or the outcome of a process.

Bathroom Floor

The surface or part of a bathroom upon which one stands, often made of tile, linoleum, or other water-resistant material.