Which of the Following Is a Key Reason for Using

question 13

Multiple Choice

Which of the following is a key reason for using business-type accounting to account for proprietary fund activities?

• A)The modified accrual basis of accounting captures all the resources and obligations associated with an activity.
• B)Depreciation is not recognized in business-type accounting in governments and surveys of statement users indicate that information on depreciation is not of high priority to governmental decision makers.
• C)The measurement focus on all economic resources is more consistent with the GASB's objectives that financial reporting should provide information to determine whether current-year revenues were sufficient to pay for current-year services.
• D)Business-type accounting facilitates comparisons with governmental activities.

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Definitions:

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Substances, often volatile, that produce chemical vapors which can be inhaled to induce a psychoactive, or mind-altering, effect.

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Small particles or droplets suspended in air, often used to refer to pollutants or propellants in sprays.

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Individuals who become parents during their teenage years, facing unique challenges and responsibilities at a young age.

Marijuana

A psychoactive drug derived from the Cannabis plant, used for medicinal or recreational purposes.