How Do the Balance Sheet and Statement of Revenues, Expenditures

question 52

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-based 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-based 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-based 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-based 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.

Analyze the impact of interest rates on foreign investment and currency valuation.

Understand the principles of a gold standard and its effect on international trade balances.

Grasp the relationship between shifts in consumer preferences and their impact on currency demand and trade balances.

Understand how exchange rate changes affect the price of imported goods and services.

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Definitions:

Budget Constraint

The limitation that the cost of a consumer’s consumption bundle cannot exceed the consumer’s income.

Utility-Maximizing

A principle in economics where individuals or firms aim to achieve the highest level of satisfaction or utility from their actions under certain constraints.

Peanut Butter

A food paste or spread made from ground, dry-roasted peanuts, often containing additional ingredients that modify the taste or texture.

Ice Cream

A sweet, frozen dessert made from cream or milk and flavors, often churned and frozen to a soft consistency.