Which Statement Is False Regarding the Statement of Revenues, Expenditures

question 29

Multiple Choice

Which statement is false regarding the Statement of Revenues, Expenditures, and Other Changes in Fund Balance when it is included with government-wide financial statements?

• A) The Statement of Revenues, Expenditures, and Other Changes in Fund Balance uses the modified accrual method of accounting.
• B) The Statement of Revenues, Expenditures, and Changes in Fund Balance presents revenues as either program revenues or general revenues.
• C) A presentation reconciles the change in governmental fund balance to the change in net position for governmental activities.
• D) Other financing sources are presented on the Statement of Revenues, Expenditures, and Other Changes in Fund Balance.
• E) All non-major funds are combined and reported together.

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Definitions:

Operating Purposes

Refers to the activities and expenditures directly related to the day-to-day functions of running a business, excluding financing and investment activities.

Charity Care

Healthcare services provided for free or at a reduced cost to individuals unable to pay.

Receivables

Money owed to a company by its customers for products or services provided on credit.

Not-for-Profit Entities

Organizations that operate for purposes other than generating profit, often focused on social, educational, or charitable objectives.