In a county's CAFR for the current fiscal year, governmental activities expenses on the government-wide statement of activities are $200 million and governmental fund expenditures on the governmental funds statement of revenues, expenditures, and changes in fund balances are $225 million. What is a possible reason why expenditures are higher than expenses?

Question

Quizplus · Accepted Answer

Expenditures in the governmental funds financial statements are higher than expenses in the government-wide financial statements primarily because of principal payments on long-term debt, such as general obligation bonds, which are recorded as expenditures in the fund financial statements but do not affect expenses on the government-wide statements.

In a County's CAFR for the Current Fiscal Year, Governmental