Which of the Following Is True Regarding Government-Wide Financial Statements

question 13

Multiple Choice

Which of the following is true regarding Government-wide financial statements?

• A) Statement of Cash Flows is not required for Government-wide statements.
• B) Prior year data must be presented.
• C) Depreciation can be reported in the statements or disclosed in footnotes.
• D) Fiduciary activities are only reported if they qualify as a major fund.

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Definitions:

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Accrual Return

The return on investment that is recognized in financial statements before any cash changes hands.

Net Cash Inflows

The amount of cash received by a company from its various operational, investment, and financing activities, minus cash outflows, during a specific period.

Net Present Value

The total present value of a series of future cash flows minus the initial cost of investment.