Which of the Following Elements Properly Will Not Be Displayed

question 33

Multiple Choice

Which of the following elements properly will not be displayed as a specific item in a government-wide statement of activities prepared by a city or county government?

• A)program revenues
• B)interfund reimbursements
• C)interest expense on long-term debt
• D)the beginning net position balance(s)

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Definitions:

Endowment Contribution

A donation made to an institution, with the stipulation that the principal amount must be maintained intact while the investment income can be used for organizational purposes.

Deferral Method

An accounting practice that postpones the recognition of revenue or expenses to a future period, rather than recording them in the period in which they are incurred.

Restricted Revenue

Funds received by an organization that are subject to limitations or conditions on how they can be used, often tied to specific projects or goals.

Encumbrance System

A method or system for tracking claims, liens, or restrictions on property to ensure clear title or usage rights.