On the Statement of Revenues, Expenditures, and Changes in Fund

Multiple Choice

On the statement of revenues, expenditures, and changes in fund balance for governmental funds, how are capital outlays reported?

A) As a separate line item in the expenditures section of the statement.
B) Capital outlays are allocated to the functional areas, much like depreciation.
C) As a separate line item in the other financing sources (uses) section of the statement.
D) Below net change in fund balances, but before beginning fund balance.