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.

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Definitions:

Nonmonetary Reward

A form of compensation or incentive that does not involve the direct payment of money, such as appreciation, recognition, or professional development opportunities.

Compensating Differential

Additional income or benefits offered to employees to offset unpleasant aspects of a job.

Compensating Differential

Additional wage or payment provided to workers to compensate for undesirable aspects of a job, such as risk or unpleasant conditions.

Compensating Wage Differential

A financial adjustment to salaries that aims to balance out less desirable aspects of a job, such as hazardous conditions or irregular hours.