A Government Reported Another Financing Source in the Amount of $500,000

question 22

Multiple Choice

A government reported another financing source in the amount of $500,000 related to the sale of land in its governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances. The land had a cost of $100,000. The adjustment in the reconciliation when moving from the changes in fund balances in the Statement of Revenues, Expenditures and Changes in Fund Balances to the change in net assets in the Statement of Activities would be:

• A) Increase of $400,000
• B) Decrease of $400,000
• C) Increase of $100,000
• D) Decrease of $100,000

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Definitions:

Written

Materials that are expressed in writing as opposed to being verbal, involving various forms of documentation, communication, and record-keeping.

Office

A room or set of rooms where business, clerical, or professional activities are conducted.

Communication

Meaningful exchange of information through messages.