Assume a Government Is Determined to Be a Special-Purpose Government

question 47

Multiple Choice

Assume a government is determined to be a special-purpose government engaged in business-type activities only. Which of the following financial statements would be required?

• A) Balance Sheet, Statement of Revenues, Expenditures, and Changes in fund Balances.
• B) Statement of Net Position, Statement of Activities, Statement of Cash Flows.
• C) Statement of Net Position, Statement of Revenues, Expenses, and Changes in Net Position, Statement of Cash Flows.
• D) Statement of Net Position and Statement of Activities.

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Definitions:

Correct To The Cent

Adjusting a monetary amount to ensure accuracy up to the smallest currency unit, often referring to rounding to the nearest cent.

Rate Of Return

The increase or decrease in the value of an investment within a defined timeframe, represented as a percent of the investment's initial price.

Portfolio

A diversified collection of investments held by an individual or institution, which may include stocks, bonds, and other assets.

Mill Rate

A tax rate used to calculate local property taxes, expressed in a millage rate, which is one thousandth of a currency unit.