Which One of the Following Statements Is False Concerning the Accounting

question 16

Multiple Choice

Which one of the following statements is false concerning the accounting for the budget in the general fund general ledger?

• A) The budgetary accounts are affected regularly as revenues and expenditures are recognized.
• B) The budgetary accounts can be adjusted during the year to reflect material changes in estimates.
• C) The budgetary accounts are closed at the end of the period.
• D) The budgetary account for expenditures is called appropriations.

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Definitions:

Average Operating Assets

The average value of assets used by a company in its operational activities, calculated over a certain period of time for analysis of performance efficiency.

Residual Income

The income that remains after subtracting all required costs of capital from the operating income; a measure of net profitability.

Minimum Required Rate of Return

The least return expected by investors for assuming the risk of investing in a project or security.

Performance of Divisions

Evaluation of the efficiency, productivity, and profitability of different segments or units within an organization, often used for internal assessment and strategy formulation.