What Basis of Accounting Is Used to Account for Transactions

question 30

Multiple Choice

What basis of accounting is used to account for transactions of a government permanent fund?

• A)Full accrual basis of accounting.
• B)Modified accrual basis of accounting.
• C)Cash basis of accounting.
• D)Budgetary basis of accounting.
• Use the following information to answer #9-#12
• Previously a city received a $1 million gift, the income from which was restricted to support maintenance of city-owned parks.During the current year the endowment earned $70,000 of which $50,000 was transferred to the City Park Special Revenue Fund.

---

Definitions:

Haploid

Refers to cells that contain one complete set of chromosomes, typical of gametes in sexually reproducing organisms.

Mycorrhizae

A symbiotic association between a fungus and the roots of a vascular host plant, beneficially affecting nutrient uptake and resistance to pathogens.

Algae

Photosynthetic organisms that are primarily aquatic and can be either unicellular or multicellular.

Lichens

Lichens are symbiotic associations between a fungus and a photosynthetic partner, usually algae or cyanobacteria, living together in a mutually beneficial relationship.