Which of the Following Statements Is not Correct

question 38

Multiple Choice

Which of the following statements is not correct?

• A) The government-wide statements are separated into governmental activities and business-type activities
• B) Discretely presented component units are also separately displayed in the fund basis statements, but not the government-wide statements.
• C) The governmental-type funds' Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances serve as inputs to the governmental activities sections of the government-wide statements.
• D) The fund-basis statements reflect modified accrual accounting, they must be adjusted to the accrual basis.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses, resulting in a net profit or loss over a specific period.

Retained Earnings

The portion of a company's profits that is not distributed as dividends to shareholders but is kept for reinvestment in the business or to pay debt.

Balance Sheet

Financial report presenting the total assets, liabilities, and equity of a company at a certain date, used to assess its financial stability and operational efficiency.

Assets

Assets are resources owned by a company that have economic value and can be used to meet debts, commit to investments, or generate income.