GOVERNMENT AND NOT-FOR-PROFIT
ACCOUNTING CONCEPTS AND PRACTICES
8TH EDITION MICHAEL GRANOF SALEHA
KHUMAWALA THAD CALABRESE DANIEL
SOLUTION MANUAL PRACTICE SCRIPT
UPDATED 2026 TESTED SOLUTIONS
⫸ 1. The difference between assets and liabilities in the government-
wide statements is called fund balance. Answer: False
⫸ 1. GASB requires a reconciliation from proprietary fund financial
statements to the government-wide statements business-activities
columns from modified accrual accounting to accrual accounting.
Answer: False
⫸ When preparing the government-wide statements, worksheet entries
are booked to provide the trial balance amounts used to prepare the
financial statements. Answer: False
⫸ Using the worksheet approach, general (governmental) long term
assets and long term debt have a balance of zero until the worksheet
entries are made. Answer: True
⫸ When preparing the government-wide statements, a worksheet entry
is required to eliminate the current period expenditures for capital outlay
and record those expenditures as capital assets Answer: True
, ⫸ When preparing the government-wide statements, an entry is required
to record depreciation expense on general capital assets Answer: True
⫸ GASB Statement No. 34 states that general capital assets should not
be reported as assets in governmental funds but should be reported in the
governmental activities column of the government-wide Statement of
Net Position. Answer: True
⫸ Capital assets acquired through proprietary funds are reported in both
the Statement of Net Position of those funds and the government-wide
Statement of Net Position. Answer: True
⫸ GASB specifically requires interest during construction in
governments' funds to be capitalized in the government-wide statements
Answer: False
⫸ When converting from governmental fund financial statements to the
governmental activities column of the government-wide statements, the
proceeds from the sale of capital assets which were listed as an "other
financing source" are eliminated and the gain or loss is recorded when
preparing the government-wide statements. Answer: True
⫸ An example of a program revenue in the government-wide Statement
of Activities would be parks and recreation fees Answer: True
ACCOUNTING CONCEPTS AND PRACTICES
8TH EDITION MICHAEL GRANOF SALEHA
KHUMAWALA THAD CALABRESE DANIEL
SOLUTION MANUAL PRACTICE SCRIPT
UPDATED 2026 TESTED SOLUTIONS
⫸ 1. The difference between assets and liabilities in the government-
wide statements is called fund balance. Answer: False
⫸ 1. GASB requires a reconciliation from proprietary fund financial
statements to the government-wide statements business-activities
columns from modified accrual accounting to accrual accounting.
Answer: False
⫸ When preparing the government-wide statements, worksheet entries
are booked to provide the trial balance amounts used to prepare the
financial statements. Answer: False
⫸ Using the worksheet approach, general (governmental) long term
assets and long term debt have a balance of zero until the worksheet
entries are made. Answer: True
⫸ When preparing the government-wide statements, a worksheet entry
is required to eliminate the current period expenditures for capital outlay
and record those expenditures as capital assets Answer: True
, ⫸ When preparing the government-wide statements, an entry is required
to record depreciation expense on general capital assets Answer: True
⫸ GASB Statement No. 34 states that general capital assets should not
be reported as assets in governmental funds but should be reported in the
governmental activities column of the government-wide Statement of
Net Position. Answer: True
⫸ Capital assets acquired through proprietary funds are reported in both
the Statement of Net Position of those funds and the government-wide
Statement of Net Position. Answer: True
⫸ GASB specifically requires interest during construction in
governments' funds to be capitalized in the government-wide statements
Answer: False
⫸ When converting from governmental fund financial statements to the
governmental activities column of the government-wide statements, the
proceeds from the sale of capital assets which were listed as an "other
financing source" are eliminated and the gain or loss is recorded when
preparing the government-wide statements. Answer: True
⫸ An example of a program revenue in the government-wide Statement
of Activities would be parks and recreation fees Answer: True
