Answer:
the primary government's financial transactions, activities, and events that are recognized and recorded in the primary government's financial statements. These items are typically reported in the financial statements of the primary government as part of its general purpose financial reporting, which provides information about the financial position, performance, and cash flows of the primary government.
Examples of items that may be reported only in the financial statements of the primary government include:
- Revenues from taxes, fees, and other sources
- Expenditures on goods and services, including salaries and wages
- Capital assets, such as buildings, land, and infrastructure
- Liabilities, such as debt and other obligations
- Net assets, which represent the residual interest in the assets of the primary government after liabilities are deducted
The financial statements of the primary government may also include notes and disclosures that provide additional information about the items reported in the financial statements. These notes and disclosures may include information about the basis of accounting used by the primary government, significant accounting policies, and any changes in accounting policies or estimates that may have affected the financial statements.