Which of the following would properly be reported in the operating statement of a governmental fund?
A) Interest on a tax anticipation note issued and repaid during the period.
B) Amortization expense.
C) Depreciation expense.
D) A grant that is intended to finance activities of the following period.

Question

Quizplus · Accepted Answer

Interest on tax anticipation notes is an operating expense of a governmental fund and should be reported in the operating statement.

Answer: D
 A grant intended to finance activities of the following period is a deferred revenue item and should not be reported in the operating statement of a governmental fund.

Which of the Following Would Properly Be Reported in the Operating