Which of the Following Is a Plausible Explanation for the Difference

question 16

Multiple Choice

Which of the following is a plausible explanation for the difference between the net change in fund balances of governmental funds (fund-level statement of revenues,expenditures,and changes in fund balances) and the change in net position of governmental activities (government-wide statement of activities) ?

• A)Some expenses reported in the statement of activities do not require the use of current financial resources and are not reported as expenditures in the fund-level statements
• B)Amounts reported as expenditures in the statement of activities are reported as capital assets in the fund-level statements
• C)Debt proceeds provide current financial resources in the statement of activities,but are reported as long-term liabilities in the fund-level statements
• D)Depreciation of general fixed assets is not reported as an expense in the statement of activities,but it is reported as an expense in the fund-level statements

---

Definitions:

Interval Variable

A type of quantitative variable that exhibits ordered relationships with meaningful, equal distances between measurements but no true zero point.

Nominal Variable

A nominal variable is a type of categorical variable for which there is no natural ordering among the categories.

Nominal Data

Data categorized into discrete groups or categories without any natural order or ranking among them, such as gender or race.

Nominal Random Variable

A type of random variable that categorizes data without a natural order or ranking among the categories.