Test: CPA Financial Accounting and Reporting (FAR)

1.

The library of the city of Howerton has ordered new shelving units at the cost of $40,000. How is this order recorded by the city in the government-wide financial statements?

Financial commitments are not formally reported on the government-wide financial statements

As an encumbrance in the business-type activities

As temporarily restricted net assets in the governmental activities

As an encumbrance in the governmental activities

1/20 questions

0%
Learning Tools by Varsity Tutors