Which of the Following Statements Regarding the Accounting for Investments

question 46

Multiple Choice

Which of the following statements regarding the accounting for investments in governmental funds is false?

• A) Interest receivable should be accrued as it is earned.
• B) Interest revenue should be recognized on a cash basis.
• C) Interest revenue is recognized no later than when it meets the availability criteria.
• D) Decreases in the fair market value of equity securities with readily determinable fair values result in a decrease in investment income.

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Definitions:

Significantly Higher Scores

Results or assessments that are markedly above average or exceed a predefined threshold.

SAT

A standardized test widely used for college admissions in the United States, assessing readiness for college-level work.

Sample

A subset of individuals, items, or data taken from a larger population used to make inferences or understand more about the larger group.

Independent Variable

The variable manipulated by the researcher that is assumed to lead to changes in the dependent variable.