Asked by Nathan Gerlach on Apr 28, 2024
Verified
How do intra-activity and interactivity transactions differ in government-wide financial reporting? How is each type reported?
Intra-Activity Transactions
Transactions that occur between divisions within the same company, affecting only internal accounts without impacting the company's financial position to external parties.
- Differentiate among various kinds of fund financial statements and statements that are government-wide in scope.
- Differentiate between intra-activity and interactivity transactions in government-wide financial reporting.
Verified Answer
MF
Marta FavelaApr 30, 2024
Final Answer :
Intra-activity transactions occur between two governmental funds so that the net totals reported for governmental activities are not affected. These transactions also occur between two enterprise funds so that the net totals reported for business-type activities are not affected. Intra-activity transactions are not reported in government-wide financial statements because no overall change is created in either the governmental activities or the business-type activities.Interactivity transactions occur between governmental funds and enterprise funds. They impact the total amount of resources reported for both governmental and business-type activities. For this reason, interactivity transactions are reported in government-wide financial statements.
Learning Objectives
- Differentiate among various kinds of fund financial statements and statements that are government-wide in scope.
- Differentiate between intra-activity and interactivity transactions in government-wide financial reporting.
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