A Government's Statement of Revenues, Expenditures, and Changes in Fund

question 153

Multiple Choice

A government's Statement of Revenues, Expenditures, and Changes in Fund Balances reflected proceeds of bonds in the amount of $1,000,000. That statement also reflected expenditures for debt service in the amount of $3,000,000, including $2,600,000 for principal payments. Assuming no other changes, the effect, when moving from the change in fund balances in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the change in Net Position for governmental activities in the Statement of Activities would be a:

• A) $1,000,000 increase.
• B) $1,000,000 decrease.
• C) $1,600,000 increase.
• D) $1,600,000 decrease.

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Definitions:

Perceptions

Perceptions are the processes by which individuals interpret and organize sensory information to understand their environment and experiences.

Binocular

Pertaining to the use of both eyes, enabling depth perception and 3D vision.

Monocular

Relating to or involving only one eye.

Perceptions

The process of organizing and interpreting sensory information, enabling us to recognize meaningful objects and events.