How should the difference between assets,deferred outflows,deferred inflows,and liabilities be characterized in government-wide financial statements?

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Quizplus · Accepted Answer

Government-wide financial statements are prepared using the economic resources measurement focus and accrual basis of accounting. In this context, assets, deferred outflows, deferred inflows, and liabilities are categorized as net position. This reflects the government's total economic resources less its total liabilities. Fund balances and fund equity are categories used in fund financial statements, which have a different focus and basis of accounting. "Available for spending" is not a recognized category in financial statement reporting.

How Should the Difference Between Assets,deferred Outflows,deferred Inflows,and Liabilities Be