In Order to Convert the Governmental Fund Statement of Revenues

question 23

Multiple Choice

In order to convert the governmental fund statement of revenues, expenditures, and changes in fund balances to a government wide statement of activities, which of the following activities is necessary?
1) Eliminate capital outlay expenditures
2) Reclassify revenues between program revenues and general revenues
3) Record bad debt expenses
4) Convert revenues from the economic flow of resources accrual basis to the current financial resources modified accrual basis

• A)1, 3, 4
• B)1, 2, 3
• C)1, 2, 3, 4
• D)1, 2, 4

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Definitions:

Same Industry

Refers to companies and businesses that operate within the same sector or category, offering similar products or services.

Peculiar Conditions

Unique or unusual circumstances that can affect an outcome or situation in specific cases.

General Economic Conditions

The overall state of the economy, including factors like inflation rates, unemployment levels, and GDP growth.

Price-Earnings Ratio

A financial metric comparing the present price of a corporation's stock to its earnings per share to assess whether the stock is under or overvalued.