Which Statement Is False Regarding the Statement of Revenues, Expenditures

question 34

Multiple Choice

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

• A) The Statement of Revenues, Expenditures, and Changes in Fund Balance uses the modified accrual method for timing purposes.
• 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 assets for governmental activities.
• D) Other financing sources are presented on the Statement of Revenues, Expenditures, and Changes in Fund Balance.
• E) All non-major funds are combined and reported together.

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Definitions:

Financial Institutions

Entities that provide financial services, including banks, insurance companies, pension funds, brokerage firms, and others.

Realized Rate

The actual return earned on an investment over a given time period.

Investment Horizon

Investment horizon refers to the total length of time an investor expects to hold an investment or portfolio before liquidating it.

Promised Yield

The return a bond issuer commits to pay to bondholders, usually expressed as an annual percentage.