For the following items that require reconciliation between governmental funds f
ID: 2498698 • Letter: F
Question
For the following items that require reconciliation between governmental funds financial statements and governmental activities financial statements at the government-wide level according to GASB standards, indicate which is the best appropriate terms.
1, Capital assets used in govrnmental activites (A, B or C)
2. Long-term liabilities that are not payable in the current perios (A, B or C)
3. Net position of internal service funds that are primarily governmental in nature (A, B or C)
4. Accrued interest payable not due in the current period. (A, B or C)
For the following items that require reconciliation between governmental funds financial statements and governmental activities financial statements at the government-wide level according to GASB standards, indicate which is the best appropriate terms.
Explanation / Answer
Capital assets used in govrnmental activites
Ans: A
Always be subtracted from fund balances—governmental funds.Capital assets used in govrnmental activites to be depreciated over a period of time in appropriate governamental fund.
2) Long-term liabilities that are not payable in the current perios
Ans: C May be added to or subtracted from fund balances—governmental funds in arriving at net position of governmental activities.
long term debt is issued with a government commitment for the debt, then the debt service phase is recorded in a debt service fund
3. Net position of internal service funds that are primarily governmental in nature (A, B or C)
Ans: C May be added to or subtracted from fund balances—governmental funds in arriving at net position of governmental activities.
4. Accrued interest payable not due in the current period. (A, B or C)
Ans: A Always be subtracted from fund balances—governmental funds.
At the fund level, accrued interest collected on bonds sold is usually recorded as a revenue of the debt service fund. Though conceptually flawed,this simplifies budgetary control of revenues and expenditures in the debt service fund