When a Governmental Entity Adopts a Basis of Accounting Other

question 24

Multiple Choice

When a governmental entity adopts a basis of accounting other than full accrual and a measurement focus that excludes long-lived assets and liabilities in its governmental fund types:

• A)It is in violation of the law.
• B)It is in violation of GAAP.
• C)It has reported in accordance with GAAP standards for the governmental fund financial statements required by the new GASB reporting model.
• D)It has the ability to better measure the results of operations.

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Definitions:

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Substances used to sweeten food and drinks without the calories of sugar.

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A carbonated soft drink flavored with various sweet syrups or natural ingredients.