ExpertEasy1 markMultiple Choice
CPA · Question 30 · Area III: State & Local Governments
Under GASB standards for the government-wide statement of net position, which of the following is reported as a component of Net Position?
Under GASB standards for the government-wide statement of net position, which of the following is reported as a component of Net Position?
Answer options:
A.
Retained Earnings
B.
Net Investment in Capital Assets
C.
Fund Balance
D.
Assigned Net Position
How to approach this question
Distinguish between Government-Wide (Net Position) and Governmental Funds (Fund Balance). Net Position components: Net Investment in Capital Assets, Restricted, Unrestricted.
Full Answer
B.Net Investment in Capital Assets✓ Correct
B
GASB 34 requires Net Position to be displayed in three components: Net Investment in Capital Assets, Restricted Net Position, and Unrestricted Net Position.
Common mistakes
Confusing Fund Balance classifications (Nonspendable, Restricted, Committed, Assigned, Unassigned) with Net Position components.
Practice the full CPA BAR Practice Exam 3
50 questions · hints · full answers · grading
More questions from this exam
Q01Orion Manufacturing provides the following financial data for the current year:<br/><br/>- Net Sa...HardQ02A manufacturing company uses a standard cost system. For the month of June, the following data is...MediumQ03A financial analyst is reviewing a company's sales data using a visualization tool. The scatter p...MediumQ04TechStart Inc. reports Net Income of $500,000. The income statement includes:<br/>- Depreciation ...MediumQ05A company produces two products, A and B. Under its traditional costing method, the company alloc...Medium