A Governmental Entity Reports Its Utility Services Provided to the Citizens

question 8

Multiple Choice

A governmental entity reports its utility services provided to the citizens in a proprietary fund.Which of the following best represents an acceptable election of accounting standards for the proprietary fund? Unless the FASB pronouncement conflicts with or contradicts a GASB pronouncement, a propriety fund must adhere to

• A)All FASB pronouncements.
• B)All FASB pronouncements issued prior to November 30, 1989, as well as any post-November 30, 1989 pronouncements specifically adopted by GASB.
• C)It must apply only GASB standards.
• D)It may elect either a or b.

---

Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another party if the latter has reasonably relied on that promise to their detriment.

Traditional Contract

A legally binding agreement following established legal formats and norms, typically involving a written document.

Unilateral

Involving only one party or side, often referring to actions or agreements made by one entity without the need for consent or participation of another.

Frequent Buyer

An individual or entity that consistently purchases goods or services from a particular company, often benefiting from loyalty programs.