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Analyze the financial statements prepared at the government-wide level in further detail: With regard to the...

Analyze the financial statements prepared at the government-wide level in further detail: With regard to the government-wide statements, distinguish between program revenues and general revenues. Share two examples of each. What is the difference in reporting between program revenues and general revenues?

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Expert Solution

a. Program Revenue:

  • The revenues specifically connected with particular programs are known as Program Revenues.
  • Examples may be Capital Grants or Operating grants connected to any program, Charges for Provision of services, etc
  • In the 'Statement of activities', we have to deduct such Program Revenue from the Functional Expense in order to arrive at Net Expenses whereas we deduct General Revenue (explained below) from this Net Expenses to arrive at Changes in Net Assets.

b. General revenues:

  • Any revenues not connected specifically with any programs are identified commonly as general revenues.
  • Examples include Grants not connected with any program, Taxes, Fees, etc.
  • In the 'Statement of activities', we have to deduct such Program Revenue (explained above) from the Functional Expense in order to arrive at Net Expenses whereas we deduct General Revenue from this Net Expenses to arrive at Changes in Net Assets.

ekkarill92 answered 1 year ago
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