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Practice CPA®CPA FAR Practice Exam 5Question 45

Medium1 markMultiple Choice

Area I: Financial ReportingFARGovernmental Accounting

CPA · Question 45 · Area I: Financial Reporting

Which of the following is a component of 'Net Position' in the government-wide Statement of Net Position?

Answer options:

A.

Retained Earnings

B.

Fund Balance

C.

Net Investment in Capital Assets

D.

Paid-in Capital

How to approach this question

Government-Wide Net Position has 3 components: 1. Net Investment in Capital Assets. 2. Restricted. 3. Unrestricted.

Full Answer

C.Net Investment in Capital Assets✓ Correct

C

Net Position is classified into three components: Net Investment in Capital Assets, Restricted Net Position, and Unrestricted Net Position.

Common mistakes

Using 'Fund Balance' for government-wide statements.

Question 44 All questions Question 46

Practice the full CPA FAR Practice Exam 5

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