Which of the Following Statements Regarding the Accounting for Investments

question 21

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 accrued as 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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