The Equity Section of the Statement of Net Assets of a Government-Owned

question 60

Multiple Choice

The equity section of the Statement of Net Assets of a government-owned hospital may contain which of the following descriptions?

• A) Fiduciary, Proprietary, and General.
• B) Reserved, Unreserved, and Undesignated.
• C) Invested in Capital Assets Net of Related Debt, Restricted, and Unrestricted.
• D) Permanently Restricted, Temporarily Restricted, and Unrestricted.

Understand the role of transactions in affecting a company's financial status.

Differentiate between various types of payments and financial activities within a business.

Understand the components that make up a balance sheet or statement of financial position.

Calculate and interpret net income.

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Definitions:

Journal Entry

A record in accounting that notes the details of a financial transaction.

Face Value

The nominal value of a security stated by the issuer, which is the amount to be repaid at maturity in the case of a bond or the value represented by each share of stock.

Retired Bonds

Bonds that have been paid off or bought back by the issuer before or at maturity, effectively removing them from existence and relieving the issuer of further obligations.

Effective-Interest Method

A method of calculating the amortized cost of a bond and the amount of interest expense over time, by applying a constant interest rate to the carrying value of the bond.