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

question 147

Multiple Choice

A government's Statement of Revenues, Expenditures, and Changes in Fund Balances reflected expenditures for debt service in the amount of $12,000,000, including $7,000,000 for interest. It also reflected proceeds of bonds in the amount of $4,000,000. No interest accruals were involved. When moving from the changes in fund balances reported for the governmental funds to the change in Net Position for governmental activities, the net change would be:

• A) $3,000,000 increase
• B) $1,000,000 increase
• C) $3,000,000 decrease
• D) $1,000,000 decrease

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Definitions:

PERT

Project Evaluation and Review Technique, a planning and control tool for managing complex projects.

Continuous Analysis

The ongoing assessment and examination of data or processes to inform decision-making and improve outcomes.

Value Chain

The sequence of activities an organization performs to design, produce, market, deliver, and support its product.

Periodic Analysis

The evaluation of business activities at regular, specified intervals to assess performance.