A Government Reports the Utility Services It Provides to Citizens

question 51

Multiple Choice

A government reports the utility services it provides to citizens in a proprietary fund. Which accounting standards must the proprietary fund apply?

• A) All FASB pronouncements, unless a FASB pronouncement conflicts with or contradicts a GASB pronouncement.
• B) All FASB pronouncements issued prior to November 30, 1989, as well as any post-November 30, 1989 pronouncements specifically adopted by GASB.
• C) All GASB pronouncements.
• D) All FASB and AICPA standards incorporated into GASB Statement No. 62, as well as any FASB pronouncements issued after November 30, 1989 that have been specifically adopted by the GASB.

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Definitions:

Consumption Function

An economic formula representing the relationship between total consumption and gross national income, depicting how income changes affect spending levels.

Aggregate Income

The total income received by all factors of production in an economy during a given period, including wages, rents, and profits.

Aggregate Income

The total income earned by all individuals or entities in an economy, including wages, profits, rents, and investment earnings.

Consumption Function

An economic equation that links the total consumption to the gross national income.