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State Whether These Statements Are True or False

Question 45

Matching

State whether these statements are true or false.Discuss why the false statements are false.

Premises:

Responses:

All funds report both financial resources and capital resources.

True

All the long-term debt of a government,including the long-term debt that will be financed by Enterprise Fund revenues,is reported in the fund-level financial statements.

False

For financial reporting purposes,operating transfers from one fund to another are generally reported in a separate section of the operating statements for each of the funds.

For financial reporting,current assets and liabilities are separated from long-term assets and liabilities in the balance sheets of Enterprise Funds.

Long-term liabilities resulting from the operating activities of a General Fund,such as accrued vacation leave,are reported in the fund-level financial statements.Long-term liabilities resulting from the capital acquisition activities of a Capital Projects Fund,however,are not.

Premises:

All funds report both financial resources and capital resources.

All the long-term debt of a government,including the long-term debt that will be financed by Enterprise Fund revenues,is reported in the fund-level financial statements.

For financial reporting purposes,operating transfers from one fund to another are generally reported in a separate section of the operating statements for each of the funds.

For financial reporting,current assets and liabilities are separated from long-term assets and liabilities in the balance sheets of Enterprise Funds.

Responses:

True

False

Correct Answer:

Premises:

Responses:

All funds report both financial resources and capital resources.

All the long-term debt of a government,including the long-term debt that will be financed by Enterprise Fund revenues,is reported in the fund-level financial statements.

For financial reporting purposes,operating transfers from one fund to another are generally reported in a separate section of the operating statements for each of the funds.

For financial reporting,current assets and liabilities are separated from long-term assets and liabilities in the balance sheets of Enterprise Funds.