For State and Local Government Units, the Full Accrual Basis

question 18

Multiple Choice

For state and local government units, the full accrual basis of accounting should be used for what type of fund?

• A) Special revenue
• B) General
• C) Debt service
• D) Internal service

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Definitions:

Illegal

Activities or actions that are prohibited by law and subject to punishment, including civil or criminal penalties.

Consideration

Something of value that is exchanged between parties in a contract, which is necessary for the agreement to be legally binding.

Gift

Something given voluntarily without payment in return, often as a symbol of affection or goodwill.

Contract

An agreement between multiple parties that is recognized and can be enforced by the legal system.