Finance and Accounting Results of Operations - Assignment Example

The total revenue is lower in the previous case because it includes the income from taxation, revenues from institutions, rights and privileges, income from dividend, interest, rent and other investments, federal grants and contracts and other income. But in the second case, it includes more details factors other than those mentioned above and these are individual and fiduciary income, corporate income, sales and use, motor vehicle sales and use, motor fuel, premiums of insurance companies, income from selling of alcoholic beverages, income from tobacco products, public service corporations, excise duty on beer and beverages, bank stock, other taxes, wine and spirit, grants and contributions.

Thus it can be seen that the government-wide statement of activities has included more detailed factors of income and thus the changes in revenue are higher in the statement. The net change in fund balances is $125585 thousand and change in net position in govt.-wide statement is $ 1060089 thousand. The changes in net position are positive in both the statement but in govt.-wide a statement it is much higher as the revenue is higher as compared to the statement of revenues, expenditures, and changes in fund balances in the governmental funds. Answer 2.Here we need to provide an understandable explanation of the results of operations of this government from the perspective of both the operating statement.

In the statement of revenues, expenditures, and changes in fund balances in the governmental funds they govt. has shown the revenues that are mentioned above and expenditures and other financing sources comprising of both cash inflow and outflow. The fund balance on June 30 is $ 637944 thousand and fund balance at 1st July is $ 512359 thousand. Thus the net change in fund balances as per the statement of revenues, expenditures, and changes in fund balances in the governmental funds is $ 125585 thousand.

In the case of the government-wide statement of activities, the govt. has shown the revenues that are mentioned above and the expenses similarly like the statement of revenues, expenditures, and changes in fund balances in the governmental funds. But in case govt.-wide statement, more detailed factors of revenues and expenditures are included. Thus the revenue is much higher than the other statement of revenues, expenditures, and changes in fund balances in the governmental funds. The net position on June 30 is $ 20184055 thousand and the net position as per 1st July is 19123966 thousand.

Thus the change in net position is $ 1060089 thousand. It can be seen that the change in net position is higher than the changes in fund balances as revenue and expenditures are higher than the statement of revenues, expenditures, and changes in fund balances in the governmental funds.