All of the following statements are true concerning the conversion of governmental funds to governmental activities except
Question:
All of the following statements are true concerning the conversion of governmental funds to governmental activities except
a. Depreciation expenditure reported in governmental funds simply becomes depreciation expense in governmental activities.
b. A decrease in the long-term liability for compensated absences will result in expenses of various functions at the government-wide level being less than expenditures at the governmental fund level. .
c. Assuming capital outlay expenditures all reflect purchases of capital assets as per the government’s capitalization threshold policy, capital outlay expenditures simply become additions to capital assets.
d. Bonds payable are not reported in the governmental funds financial statements but will be reported in the government-wide financial statements for governmental activities.
Step by Step Answer:
Governmental And Nonprofit Accounting Theory And Practice
ISBN: 9780132552721
9th Edition
Authors: Robert J Freeman, Craig D Shoulders, Gregory S Allison, Terry K Patton, Robert Smith,