Unusual and infrequent items are reported on the government-wide statement of activities as which?

• A. As separate line items below General Revenues in the statement of activities
• B. In notes to financial statements
• C. In the program revenues section
• D. As part of capital grants

Answer: (A)

Unusual and infrequent items are shown on the government-wide statement of activities as separate line items, placed below the General Revenues. This presentation keeps ongoing operating results clear—program costs and general revenues reflect normal activity—while highlighting material nonrecurring effects on net position. By presenting these items separately, users can see the impact of nonrecurring events without them distorting the normal cost of services. For example, a significant one-time gain or loss from a settlement would appear as its own line item rather than being embedded in program expenses or capital-related amounts.