ExpertMedium1 markMultiple Choice
CPA · Question 12 · Area III: State & Local Governments
A government's Statement of Net Position reports Net Position in three components. Which of the following is NOT one of those components?
A government's Statement of Net Position reports Net Position in three components. Which of the following is NOT one of those components?
Answer options:
A.
Net Investment in Capital Assets
B.
Restricted Net Position
C.
Assigned Net Position
D.
Unrestricted Net Position
How to approach this question
Distinguish between 'Net Position' (Government-wide/Proprietary: Net Investment in Capital Assets, Restricted, Unrestricted) and 'Fund Balance' (Governmental Funds: Nonspendable, Restricted, Committed, Assigned, Unassigned).
Full Answer
C.Assigned Net Position✓ Correct
The three components of Net Position in the government-wide Statement of Net Position are: 1) Net Investment in Capital Assets, 2) Restricted Net Position, and 3) Unrestricted Net Position. 'Assigned' is a classification used for Fund Balance in the governmental fund financial statements (GASB 54).
Common mistakes
Confusing Fund Balance classifications (NU CAR) with Net Position components (RUN).
Practice the full CPA BAR Practice Exam 5
50 questions · hints · full answers · grading
More questions from this exam
Q01Orion Manufacturing is analyzing its working capital efficiency. For the current year, Orion repo...HardQ02Vanguard Corp. uses a standard costing system. For the month of June, the following data is avail...HardQ03Titan Industries is evaluating a new project with the following projected cash flows:<br/>- Initi...MediumQ04Under ASC 606, which of the following scenarios BEST describes a performance obligation that is s...MediumQ05Blue City's General Fund reported the following for the fiscal year:<br/>- Property taxes levied:...Hard