In the Statement of Revenues, Expenses and Changes in Net

question 25

Multiple Choice

In the statement of revenues, expenses and changes in net position, expenses of government hospitals should be reported by

• A) Natural classifications.
• B) Department.
• C) Function.
• D) Either by natural classification or by function.

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Definitions:

Invested

The maneuver of allocating finances with the aspiration of earning income or profit.

Term

The time period for which a loan or investment is made.

Rate of Interest

The rate at which interest is applied to a loan or credited to savings.

Investment

Allocating resources, usually money, with the expectation of earning an income or profit.