TRUE or FALSE 4.The city's general fund incurs an expense on December 30, Year 3, of $90,000 that will not be paid for 8 months. On the Year 3 financial statements, there is a reconciliation that starts with the total change in fund balances for the Governmental Funds and works down to end with the total change in the net position for the Governmental Activities. Because of differences between modified accrual accounting and accrual accounting, this $90,000 must be subtracted as part of this reconciliation.

TRUE or FALSE 5.On December 30, Year 3, the city issues $400,000 in long-term bonds for face value to finance public works projects. On the Year 3 financial statements, there is a reconciliation that starts with the total change in fund balances for the Governmental Funds and works down to end with the total change in the net position for the Governmental Activities. As a result of the bond issuance, this $400,000 must be subtracted as part of this reconciliation.

TRUE or FALSE6.On December 30, Year 3, the city spends $900,000 on a sidewalk. On the Year 3 financial statements, there is a reconciliation that starts with the total change in fund balances for the Governmental Funds and works down to end with the total change in net position for the GovernmentalActivities. As a result of this acquisition, this $900,000 must be subtracted as part of this reconciliation.

TRUE or FALSE7.A discretely presented component unit is shown in the government-wide financial statements as if it were one of the funds within the government.

TRUE or FALSE 8.All of the board of directors for a nature museum are appointed by the city. This fact alone makes this nature museum a component unit of the city.