1. Which of the following statements is correct?

A.            The workpaper adjustments that are made to convert governmental funds to governmental activities are posted to the general ledger.

B.            On the government-wide statement of activities, the amounts reported for program revenues include revenues from taxes.

C.            A and B.

D.            Neither A nor B.

2.  On the government-wide statement of activities, user charges would include revenues from which of the following?

A.            Building permits.

B.            Liquor licenses.

C.            A and B.

D.            Neither A nor B.

3.  A local government received $100,000 from the federal government to train its public service employees to combat terrorist activities. 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.