Which Item Is Not Included on the Government-Wide Statement of Activities

question 35

Multiple Choice

Which item is not included on the government-wide Statement of Activities?

• A) Revenues.
• B) Expenses.
• C) Assets.
• D) Operating grants.
• E) Capital contributions.

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Definitions:

Pre-Tax Net Income

The income earned by a business before the deduction of tax expenses.

Variable Costs

Expenses that change in proportion to the activity of a business, such as the cost of raw materials.

Fixed Costs

Expenses that do not change in total regardless of the level of production or sales activity.

Absorption Costing

A product costing approach that incorporates all costs of manufacturing, including both fixed and variable, into the product's price.