Which of the following is true regarding the government-wide Statement of Activities?
A) The government-wide Statement of Activities may reflect expenses either by function general government, public safety, etc. or by object or natural classification salaries, supplies, etc..
B) The government-wide Statement of Activities reflects taxes as general revenues.
C) The government-wide Statement of Activities is prepared using the modified accrual basis of accounting for governmental activities and using the accrual basis of accounting for business-type activities.
D) Indirect program expenses may not be allocated to the other functional areas.

Question

Quizplus · Accepted Answer

In the government-wide Statement of Activities, direct expenses are required to be reported by function. All taxes levied by the government, including those restricted to a particular purpose, are reported as general revenues. Although rarely done, governments may allocate indirect expenses to functions.

Which of the Following Is True Regarding the Government-Wide Statement