Which of the Following Statements Is False

question 17

Multiple Choice

Which of the following statements is false?

• A) Governments that do not prepare a CAFR are not required to prepare a Management's Discussion and Analysis.
• B) The Governmental Accounting Standards Board has established requirements for the statistical section of a CAFR.
• C) Governments have some latitude in selecting major funds to be reported in the CAFR.
• D) Governments are allowed to have additional information in their statistical section that is not required information.

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Definitions:

Net Income

The residual income of a business following the subtraction of all taxes and costs from the total revenue.

Gross Profit

The financial metric calculated as sales revenue minus the cost of goods sold, indicating the efficiency of a company in producing and selling its goods.

Sales Discounts

Reductions in the sales price offered by a seller to a buyer, often to prompt early payment or bulk purchases.

Accounts Receivable Turnover Ratio

A financial metric indicating how efficiently a company collects cash from its credit customers by measuring how often receivables are collected during a period.