Which of the financial statements described below is prepared by the general fund of a state or local government?
A)A statement of cash flows.
B)An income statement.
C)A statement of revenues,expenses,and changes in retained earnings.
D)A statement of revenues,expenditures,and changes in fund balance.

Question

Quizplus · Accepted Answer

The statement of revenues, expenditures, and changes in fund balance is prepared by the general fund of a state or local government. This statement shows the inflows and outflows of resources in the fund, as well as the resulting changes in fund balance. It is the primary financial statement used to assess the financial position and performance of the general fund. Choices A and B are not typically prepared by the general fund of a state or local government, while choice C is more commonly associated with corporate financial statements.

Which of the Financial Statements Described Below Is Prepared by the General