Which of the Following Adjustments Will Not Be Necessary to Covert

question 33

Multiple Choice

Which of the following adjustments will not be necessary to covert the measurement focus and basis of accounting found in the governmental funds to the governmental activities reported in the government-wide financial statements?

• A) Recording expenses with no corresponding expenditures.
• B) Converting "when due" payables to accrual based payables.
• C) Eliminating expenditures with no expense counterparts.
• D) Adjusting the fair value of investments.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Supplying Division

The department or unit within a company that is responsible for providing the materials, products, or services to other divisions or departments within the same company.

Transfer Price Approach

A method used for pricing transactions between affiliated companies or divisions within the same larger corporate entity.

Standard Cost Approach

A costing method that assigns a fixed cost to inventory and cost of goods sold, based on standard estimates of input costs.