In reconciling the net change in fund balances to the change in net position of governmental activities which of the following would be added to the change in net position of governmental activities?
A) Issuance of long-term debt.
B) Construction of capital assets.
C) Accrual of interest expense.
D) Depreciation expense.

Question

Quizplus · Accepted Answer

Construction of capital assets is added to the change in net position of governmental activities because it represents an increase in capital assets, which is a positive adjustment when reconciling fund balances to the government-wide financial statements.

In Reconciling the Net Change in Fund Balances to the Change