3-1. Explain the different purposes of the fund-based and government- statements of a state or local government and the primary differences the fund-based and government-wide operating statements. 3-2. In relation to the government-wide statement of activities, den expenses and indirect expenses and why it is important to distinguish between them. 3-3. Describe the format prescribed by the GASB for the government-wide statement of activities and how that format benefits financial statement users. 3-4. Indicate whether the following revenues should be classified as program reve- nues or general revenues on the government-wide statement of activities. a. Unrestricted operating grants that can be used at the discretion of the city council. b. Capital grants restricted for highway construction. c. Charges to other governments for police assistance at a special event. d. A special assessment for snow removal. e. Licenses and permits. f. Motor vehicle fuel taxes restricted for road repair. g. Investment earnings restricted for art preservation. 3-5. Explain the essential differences between revenues and other financing sources and between expenditures and other financing uses. How is each of these items reported on the governmental funds statement of revenues, expenditures, and changes in fund balances