1.  A local government received $5,000,000 from the State for its share of the State’s income taxes. The resources received by the local government would be reported on the local government’s government-wide statement of activities under the column headed

A.            Operating grants.

B.            Capital grants.

C.            User charges.

D.            General revenues.

2.   On the workpaper to convert governmental funds to governmental activities, which of the adjustments listed below are made because the total fund balance of the governmental funds is overstated?

A.            The adjustment for accrued but unmatured interest on general obligation bonds.

B.            The adjustment for the net pension liability related to police and firefighters’ pensions.

C.            A and B.

D.            Neither A nor B.

3.  On the workpaper to convert governmental funds to governmental activities, which of the adjustments listed below are made because the total fund balance of the governmental funds is understated?

A.            The adjustment to eliminate interfund receivables and payables between governmental and internal service funds.

B.            The adjustment for capital assets acquired by governmental funds.

C.            A and B.

D.            Neither A nor B.