When a Government Enterprise Fund Has Restricted Assets on Its

question 39

Multiple Choice

When a government enterprise fund has restricted assets on its statement of net position, which of the following is a true statement?

• A) The total of the restricted assets in the asset section will be equal to the "restricted net position" amount in the equity section.
• B) The total of the restricted assets will be offset by a liability of an equal amount.
• C) The total of the restricted assets less related liabilities will be equal to the "restricted net assets" amount in the equity section.
• D) None of the above statements is true.

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Definitions:

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer, aiming to streamline a business’s supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.

Loss Incurred

Refers to a financial deficit that results from a business operation, transaction, or other activities.

Unsold Unit

A product unit that remains unsold after being offered to the market, representing a missed revenue opportunity.

Production Methods

Various approaches and techniques used in the creation of goods and services, including mass production, batch production, and custom production.