business-type activities? 2. How are revenues from property taxes accounted for, i.e., as a single amount, or in multiple categories? Identify the various categories and indicate the percentage breakdown (e.g., residential property taxes are 50 percent of the total property tax revenues). 3. Which of the entitys governmental functions or activities had the greatest amount of directly identifi- able revenues? 4. Does the report discuss the accounting basis for recognizing revenues? 5. Does the governments government-wide statement of net position or governmental-fund balance sheet report deferred revenue (or deferred inflows of resources)? If so, what is the most likely reason this amount has been deferred? 6. What is the governments property tax rate? 7. At what percentage of fair market value is real property assessed? 1. How does the government classify its governmental expenditures, by function or by object? Are the classifications approximately the same in both the governmentwide and the fund statements? 2. What was the citys largest expenditure for fiscal year 2014? By how much did this increase or decrease since FY 2013? Since FY 2008 (see statistical section)? Can you draw any inferences from this comparison as to the efficiency and effectiveness of the city in providing this service? If not, what other information would you need to make such a judgment? 3. What are the major differences in expenditures/expenses (i.e., reconciling items) as they are reported in the governmental fund and the governmentwide statements? 4. On what basis does the government account for its inventories (purchases or consumption)? Does the City maintain a fund balancenonspendable amount for inventories? 5. On what basis does it account for insurance or other prepaid items in its governmental funds? How can you tell? 6. To and from which funds or component units have there been general fund transfers? 7. Explain the nature of any governmentalfund balance sheet classifications related to expenditures. 8. Does the entity report depreciation as an expense in its governmentwide statements? If not, why not? 9. What types of other financing sources and uses does the governmental entity report in the general fund? What effect do these items have on the net change in fund balance for the year? Expert Answer