The objective of a government is to provide services to its citizens

a. True

b. False

A statement of revenues, expenditures, and changes in fund balances is used to report the inflows and outflows of current financial resources of governmental funds.

a. True

b. False

Accounting purpose of Governmental and not-for-profit organizations are different from business organizations due to the following reasons EXCEPT:

a. Different purposes in society

b. Financed by resource providers who do not expect benefits proportional to the resources they provide

c. Management has a special duty to be accountable for how resources are used in providing services

d. Accountable to the stakeholders of an organization

Question 4

Which of the following statements is true regarding the basic financial statements of a state or local government?

a. Separate columns must be provided in the government-wide financial statements for governmental activities, business-type activities, and fiduciary activities.

b. Discretely presented component units should be reported as a separate column on the fund financial statements.

c. Governmental fund financial statements should provide separate columns for each major fund.

d. All of the above.