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

question 136

Multiple Choice

A government's Statement of Revenues, Expenditures, and Changes in Fund Balances reported proceeds of bonds in the amount of $2,000,000. It also reported expenditures for bond principal in the amount of $500,000. The last interest payment was on the last day of the fiscal year. The reconciliation from the governmental funds changes in fund balances to the governmental activities change in Net Position would reflect aan) :

• A) Increase of $1,500,000.
• B) Decrease of $1,500,000.
• C) Increase of $500,000.
• D) Decrease of $500,000.

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Definitions:

Population Mean

The average value of a characteristic in a population, calculated by summing all the values and dividing by the number of values.

Significance Level

The probability of rejecting the null hypothesis when it is actually true; a measure of the threshold for the likelihood of a Type I error.

Type II Error

A statistical error that occurs when a hypothesis test fails to reject a false null hypothesis.

Sample Size

The number of observations or replicates included in a statistical sample.