When Preparing Government-Wide Statements, Which of the Following Is not

question 18

Multiple Choice

When preparing government-wide statements, which of the following is not true?

• A) General capital assets, general long-term debt, and internal service funds are added through worksheet journal entries.
• B) Worksheet entries eliminate elements of the modified accrual basis fund statements that do not conform to accrual accounting, such as expenditures for capital assets and principal repayments.
• C) Entries are necessary to adjust revenues to the accrual basis, record expenses not recognized under the modified accrual basis.
• D) Entries are necessary to eliminate fiduciary funds.

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Definitions:

Rent Revenue

Income earned by a company from renting out properties or equipment to others.

Deferred Tax Liabilities

The amount of income tax payable in future reporting periods in respect of taxable temporary differences.

Depreciation Adjustment

Accounting action that alters the depreciation expense recognized for an asset, potentially due to changes in estimate, salvage value, or useful life.

Tax Effect

The impact of tax laws on the financial statements of a company, particularly concerning deferred tax assets and liabilities.