GASB 34 Established Four Types of Interfund Activities

question 46

Multiple Choice

GASB 34 established four types of interfund activities. Interfund activities are recognized as revenue in a governmental fund for an:

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Unregulated

Describes activities or sectors not controlled or governed by rules set by authorities or regulatory bodies.

Profit-Maximizing

A strategy in business where a firm seeks to achieve the highest possible profit.

Monopolist

An individual or company that is the sole provider of a particular product or service in the market, giving them significant control over prices and market conditions.

Marginal Cost Pricing

A strategy where the price of a good or service is set equal to the marginal cost of producing one more unit of it.