The Highest Level of Priority of Pronouncements That a Government

question 10

Multiple Choice

The highest level of priority of pronouncements that a government entity should look to for accounting and reporting guidance is:

• A) GASB Technical Bulletins.
• B) GASB Concepts Statements.
• C) AICPA Industry Accounting Guides.
• D) GASB Statements.

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Definitions:

Ledger Accounts

A record within the general ledger that is used to collect and store balance and transaction information for individual items such as assets, liabilities, equity, revenues, and expenses.

Retained Earnings Account

An equity account that represents the accumulated portion of net income that a company has decided to keep and reinvest in the business rather than distribute to shareholders as dividends.

Permanent Account Balances

Permanent account balances are those balances in accounts that are carried over into the next accounting period, including assets, liabilities, and equity accounts.