Question

Which of the following are reported in the functions/programs section of the statement of activities at the government-wide level where they reduce the net expense of each function or program or produce a net revenue?

1) Revenues
2) Expenses
3) Net assets
4) Liabilities

Answer 1

In the functions/programs section of the statement of activities at the government-wide level, revenues and expenses are reported. Net assets and liabilities are reported in the statement of net position.

Step-by-step explanation:

In the functions/programs section of the statement of activities at the government-wide level, revenues and expenses are reported. Revenues represent the inflow of resources, such as taxes and fees collected by the government. Expenses, on the other hand, represent the outflow of resources, such as the costs incurred to provide government services.

Net assets and liabilities are reported in the statement of net position, not in the functions/programs section. Net assets represent the difference between assets and liabilities, and liabilities represent the obligations of the government to pay for goods and services.