Which of the Following Is a NOT a True Statement

question 43

Multiple Choice

Which of the following is a NOT a true statement with regard to accounting and reporting for federal government agencies versus accounting and reporting for state and local governments?

• A) In their respective government-wide statements, state and local governments use the accrual basis of accounting whereas federal agencies use the cash basis of accounting.
• B) State and local governments record appropriations whereas federal agencies record apportionments.
• C) Federal agencies use a dual-track method of accounting for proprietary accounts and budgetary accounts; state and local governments use both budgetary and proprietary accounts only in governmental funds.
• D) The budget is recorded in the general ledger of a state or local government, but not in the general ledger of a federal agency.

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Definitions:

Machine-Hours

A measurement of the amount of time machines are used in production during a specific period.

Batches

Batches refer to a specific quantity of material or products processed or produced at one time in a manufacturing or production process.

Activity Rates

Ratios used to allocate costs to products or services based on the amount of activity consumed by each.

Activity-Based Costing

A pricing technique that allocates expenses to goods or services according to the tasks and materials involved in their creation.