Question

Here is information on a county government's governmental funds at the end of the current year:

Fund balances, governmental funds	$ 6,000,000
Accrued interest on long-term debt	50,000
Principal of long-term debt	10,000,000
Capital assets net of accumulated depreciation	8,000,000
Net OPEB obligation	700,000
Net pension obligation	2,500,000

The net position of governmental activities, reported on the government-wide statement of net position, is:

	A.	$ 7,250,000
	B.	$ 5,750,000
	C.	$ 750,000
	D.	$11,250,000

Answer 1

Answer :-

The correct answer is Option C - $750,000

Explanation -

Particular	Amount
Fund balances, governmental funds	$6,000,000
Add :-Capital assets net of accumulated depreciation	$8,000,000
	$14,000,000
Less :- Accrued interest on long-term debt	($50,000)
Principal of long-term debt	($10,000,000)
Net OPEB obligation	($700,000)
Net pension obligation	($2,500,000)
Net position of governmental activities	$750,000

Therefore ,

The net position of governmental activities, reported on the government-wide statement of net position, is $750,000