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.

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Definitions:

Price Elasticities

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Deadweight Loss

An economic inefficiency that occurs when the allocation of resources is not optimal, often resulting from taxes or monopolies.

Behavioural

Relating to or focusing on the actions or reactions of individuals, often in response to external stimuli.

Interviewer

A person who conducts an interview, often for the purpose of evaluating qualifications or obtaining information.