1. In a county’s 2018 CAFR, general government expenses on the government-wide s
ID: 2577270 • Letter: 1
Question
1. In a county’s 2018 CAFR, general government expenses on the government-wide statement of activities are $435 million and general government expenditures on the governmental funds statement of revenues, expenditures, and changes in fund balances are $385 million. What is a possible reason why expenditures are lower than expenses?
A. Accrued OPEB earned by governmental fund employees in 2018
B. Capital assets purchased by governmental funds in 2018
C. Salaries paid to governmental fund employees in 2018
D. Maintenance costs incurred by governmental funds in 2018
Explanation / Answer
Answer:
Accrued OPEB earned by govbernmental fund employees in 2018 is the possible reason why expenditures are lower than expenses.
Capital assets purchased by governmental fund emplyees in 2018, it will increase the capital expenditure, this option is wrong.
Salaries paid to governmental fund employees in 2018, its a fixed expenses paid by the governments. This option is wrong.
Maintainence costs incurred by governmental funds in 2018, it decreases the expenses already maintainence costs occured. in this situation expenditure would be greater than the expenses only. This option also wrong
Hence, Option A " Accrued OPEB earned by government fund employees in 2018' is the correct option.
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