The Appropriate Basis of Accounting for the Proprietary Funds of a Government

question 71

Multiple Choice

The appropriate basis of accounting for the proprietary funds of a government is

• A) Cash basis.
• B) Modified accrual.
• C) Full accrual.
• D) None of the above.

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Definitions:

Opportunity Cost

Opportunity Cost is the foregone benefit that would have been derived by choosing the next best alternative when making a decision.

Marginal Analysis

An examination of the added benefits of an activity compared to the added costs incurred by that same activity.

Cell Phones

Portable electronic devices that allow users to make voice calls, send text messages, and access various digital services.

Total Profit

The total income a business earns after subtracting all expenses and costs associated with its operations.