Which of the Following Is Not a Characteristic of the General

question 38

Multiple Choice

Which of the following is not a characteristic of the General Fund?

• A) Is used to account for all financial resources that are not restricted, committed, or assigned to a specific purpose and consequently accounted for in another fund.
• B) Is used by all governments that report governmental fund activities.
• C) Requires a combining statement at year end for governments that have more than one General Fund.
• D) Is established at inception of a government and exists throughout its life.

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Definitions:

Units-of-Activity Method

A depreciation method where the expense is based on the number of hours used or units produced by an asset, rather than the passage of time.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Residual Value

The estimated value of an asset at the end of its useful life.

Component Depreciation

The practice of depreciating parts of an asset separately in order to more accurately reflect their useful lives and value.