How Do the Balance Sheet and Statement of Revenues, Expenditures

question 67

Multiple Choice

How do the balance sheet and statement of revenues, expenditures, and changes in fund balances of governmental funds differ from the financial statement presentation for the governmental activities in the government-wide statement of net assets and statement of activities?(1) Internal service funds are not included in the fund financial statements of governmental funds but could be reported in the governmental activities of government-wide financial statements.(2) The economic resources measurement basis is used for fund financial statements of governmental funds and the current financial resources measurement basis is used for governmental activities in the government-wide financial statements.(3) Modified accrual accounting is used for fund financial statements of governmental funds to time revenues and expenditures and accrual accounting is used for governmental activities of government-wide financial statements.(4) The financial statements of governmental funds for fund financial statements are the same as governmental activities in government-wide financial statements but with different titles of the financial statements.

• A) 1 and 2.
• B) 2, 3, and 4.
• C) 1, 2, and 3.
• D) 1 and 3.
• E) 1, 2, 3, and 4.

Identify and categorize different types of costs and activities in ABC.

Calculate product costs using an activity-based costing system.

Recognize the benefits and limitations of activity-based costing.

Apply activity-based costing to various scenarios, including manufacturing and service industries.

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Definitions:

Probability

A measure of the likelihood of a specific outcome or event occurring, often expressed as a percentage or a ratio.

Systematic Risk

Also known as market risk, it refers to the risk inherent to the entire market or market segment and cannot be eliminated through diversification.

Cost of Borrowing

The total amount of interest and other charges an individual or entity pays when taking out a loan.

Announcement

A formal public statement or notification about a new development, decision, or update related to businesses or financial markets.