With respect to the content of government-wide statements, which of the following is correct? A) Internal service funds are typically reported in the governmental activities sections of the government-wide statements, while fiduciary activities are not included in the governmentwide statements. B) Fiduciary activities are included the government-wide statements and internal service funds are not included in the government-wide statements. C) Interfund transactions are not adjusted when preparing the government-wide statements because they cancel each other out. D) Interfund transaction are separately stated to show detail but do not affect the ending balances on the statements because revenues equal expenses.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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With respect to the content of government-wide statements, which of the following is correct?
A) Internal service funds are typically reported in the governmental activities sections of the
government-wide statements, while fiduciary activities are not included in the governmentwide
statements.
B) Fiduciary activities are included the government-wide statements and internal service funds are
not included in the government-wide statements.
C) Interfund transactions are not adjusted when preparing the government-wide statements
because they cancel each other out.
D) Interfund transaction are separately stated to show detail but do not affect the ending balances
on the statements because revenues equal expenses.
Transcribed Image Text:With respect to the content of government-wide statements, which of the following is correct? A) Internal service funds are typically reported in the governmental activities sections of the government-wide statements, while fiduciary activities are not included in the governmentwide statements. B) Fiduciary activities are included the government-wide statements and internal service funds are not included in the government-wide statements. C) Interfund transactions are not adjusted when preparing the government-wide statements because they cancel each other out. D) Interfund transaction are separately stated to show detail but do not affect the ending balances on the statements because revenues equal expenses.
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