ExpertMedium1 markMultiple Choice
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?
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
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.
Practice the full CPA FAR Practice Exam 5
50 questions · hints · full answers · grading
More questions from this exam
Q01Vanguard Corp. reported net income of $750,000 for the current year. Relevant balance sheet accou...HardQ02On January 1, Year 1, Parent Co. acquired 80% of Sub Co. for $800,000. The fair value of the nonc...HardQ03A nongovernmental not-for-profit organization received the following contributions during Year 1:...HardQ04City of Oakville issued $2,000,000 in general obligation bonds at 101 to finance the construction...HardQ05TechSol Inc. has 100,000 shares of common stock outstanding throughout Year 1. Net income was $40...Hard