Special Purpose Local Governments Engaged Only in Fiduciary-Type Activities Are

question 46

Multiple Choice

Special purpose local governments engaged only in fiduciary-type activities are required to prepare all of the following financial reports except:

• A) Statement of Fiduciary Net Assets
• B) Statement of Cash Flows
• C) Statement of Changes in Fiduciary Net Assets
• D) MD&A

---

Definitions:

Crossover Rate

The rate at which two projects have the same net present value, used in capital budgeting to compare projects.

Mutually Exclusive

Situations or events that cannot occur at the same time, implying that the occurrence of one event excludes the occurrence of the other.

NPV

Net Present Value, a method to assess the profitability of an investment by comparing the present value of cash inflows to the present value of cash outflows.

NPV

Net Present Value is a financial measure that determines the discrepancy between the present value of money coming in and going out over a certain timeframe.