To prepare the governmental activities column of the government-wide statement of net position, other financing sources received from the issuance of bonds in a Capital Projects Fund during the current year will need to be reclassified as Bonds payable.

Question

Quizplus · Accepted Answer

Under the economic resources measurement focus that is used to prepare government-wide financial statements, long-term liabilities are recorded and other financing sources are not recorded. Therefore, other financing sources related to proceeds from a bond issues in a Capital Projects funds will need to be eliminated and Bonds payable will need to be recorded.

To Prepare the Governmental Activities Column of the Government-Wide Statement