Which Statement Is Not Correct

question 1

Multiple Choice

Which statement is not correct?

• A) Governmental funds account for expenditures of financial resources rather than matching revenues and expenses.
• B) The Encumbrances Outstanding account should be reversed and closed at the end of a fiscal year.
• C) Revenues from licenses and permit fees are recognized when received in cash if using the modified accrual basis of accounting for governmental funds.
• D) A fund is an independent accounting entity composed of cash and other financial resources, segregated for the purpose of carrying on specific activities and objectives.
• E) Commitments for purchase orders are recorded as expenses.

---

Definitions:

Conditioning

A process of behavior modification by which a subject comes to associate a desired behavior with a previously unrelated stimulus.

Cognitive Science

An interdisciplinary field that studies the mind and its processes, including how people think, learn, remember, and perceive.

Control of Antecedents

Strategies or techniques aimed at managing or altering environmental or internal factors that precede and trigger a specific behavior.

Decrease Target Behavior

A behavior modification strategy aiming to reduce or eliminate an undesired or problematic behavior.