In its government-wide statement of net position, a county government reports total assets of $400 million for governmental activities. In the governmental funds balance sheet, total assets for governmental funds are $100 million. Which item could explain why total assets of governmental activities is higher than total assets of governmental funds?

Question

Quizplus · Accepted Answer

Capital assets, such as infrastructure, buildings, and land, are included in the government-wide financial statements but are not reported in the governmental funds financial statements. The fair value of derivative investments, which are financial instruments, could be part of the total assets in the government-wide statement of net position but might not be included in the governmental funds balance sheet.

In Its Government-Wide Statement of Net Position, a County Government