When a Governmental Entity Adopts a Basis of Accounting Other

question 26

Multiple Choice

When a governmental entity adopts a basis of accounting other than full accrual and a measurement focus that excludes long-lived assets and liabilities in its governmental fund types:

• A)It is in violation of the law.
• B)It is in violation of GAAP.
• C)It has recorded transactions in accordance with standards for presentation in the fund financial statement required by the new GASB reporting model.
• D)It has the ability to better measure the results of operations.

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Definitions:

Manifold Gauge Set

The shop station used to recycle, recharge, and diagnose A/C systems.

Hand Valves

Devices that control the flow of fluid through pipes or tubing, manually operated by a person.

Receiver/Dryer

Performs three functions on liquid refrigerant in the refrigeration cycle: filters particles, removes moisture, and stores a small amount of the liquid refrigerant until needed in the system evaporator.