Assume a government reported Other Financing Sources - Proceeds of Bonds in the amount of $1,000,000 in the governmental fund Statement of Revenues,Expenditures,and Changes in Fund Balances.When preparing the reconciliation from the changes in fund balances in that statement to the changes in net assets in the governmental funds column in the Statement of Activities,an increase of $1,000,000 would be entered.

Question

Quizplus · Accepted Answer

Other financing sources, such as proceeds from bonds, do not affect the changes in net assets in the Statement of Activities. Therefore, the $1,000,000 should not be entered as an increase in the reconciliation between the two statements.

Assume a Government Reported Other Financing Sources - Proceeds of Bonds