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How is the format used on the Statement of Revenues, Expenditures, and Changes in Fund
Balances for the general fund different from the format on Income Statements used by for-profit
organizations?
Solution
The main difference which lies in the format of both is of the terminology used. Whereaas
Income Stateemnt uses revenue, expenditure and net income as the basis of their statement's
skeletal. The Statement of Revenues, Expenditures, and Changes in Fund Balances for the
general fund uses revenue, expenditure and excess of revenue over expenditure along with other
financing sources (uses) which included cash inflow and outflow from activities which are not
the main sources of finances or revenue or source of usage.
Excess (deficit) of revenue over expenditure is added in fund balance account of Statement of
Revenues, Expenditures, and Changes in Fund Balances for the general fund whereas in Income
Statement it is added in retained earnings section

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How is the format used on the Statement of Revenues, Expenditures, a.pdf

  • 1. How is the format used on the Statement of Revenues, Expenditures, and Changes in Fund Balances for the general fund different from the format on Income Statements used by for-profit organizations? Solution The main difference which lies in the format of both is of the terminology used. Whereaas Income Stateemnt uses revenue, expenditure and net income as the basis of their statement's skeletal. The Statement of Revenues, Expenditures, and Changes in Fund Balances for the general fund uses revenue, expenditure and excess of revenue over expenditure along with other financing sources (uses) which included cash inflow and outflow from activities which are not the main sources of finances or revenue or source of usage. Excess (deficit) of revenue over expenditure is added in fund balance account of Statement of Revenues, Expenditures, and Changes in Fund Balances for the general fund whereas in Income Statement it is added in retained earnings section