Author Question: A governmental fund has total liabilities in excess of its total assets at the end of the fiscal ... (Read 66 times)

Sportsfan2111 · **on:** Jul 5, 2018

A governmental fund has total liabilities in excess of its total assets at the end of the fiscal year. It has no deferred resource inflows or outflows. Which of the following statements is always true?

a. fund balance is negative
b. cash is less than short-term receivables
c. payables exceed receivables
d. payables exceed cash

Question 2

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.
a. True
b. False

Indicate whether the statement is true or false