When Converting from the Enterprise Funds Statement of Net Assets

question 61

True/False

When converting from the enterprise funds Statement of Net Assets to the government-wide Statement of Net Assets (government-wide statements),it is necessary to add fixed assets and to deduct long-term debt.

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Definitions:

Inventory

Raw materials, work-in-progress, and finished goods that are considered assets and intended for sale in the ordinary course of business.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity that it uses to finance its overall operations and growth.

Accounts Receivable

Amounts payable to a firm by its buyers for items or services that have been supplied but are still unpaid.

Capital Structure

Capital Structure is the mix of debt and equity financing a company uses to fund its operations and growth.