Recently Effective Accounting Standards Require the Preparation of Two Separate

question 57

Multiple Choice

Recently effective accounting standards require the preparation of two separate sets of financial statements. The first set of fund financial statements are similar to the historical fund based reporting model. Which of the following statements is false concerning the additional financial statements that are now required?

• A)the statements are designed to focus on the governmental unit as a whole
• B)the statements consolidate all government operations on a full accrual basis
• C)the statements are designed to report on the profit making ability of the resources collected
• D)the statements adopt an economic resources measurement focus

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Definitions:

Rank

A position within a hierarchical structure that often indicates order of importance or authority.

Voters

Individuals who are eligible and participate in the process of electing representatives or deciding on public issues through the act of voting.

Candidates

Individuals who present themselves for selection by others, such as for elections to public office or for roles in an organization.

Cost of Living

The total amount of money needed to cover basic expenses such as housing, food, taxes, and healthcare in a certain place and time.