When a Governmental Entity Adopts a Basis of Accounting Other

question 22

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 for governmental fund financial statements.
• D)It has the ability to better measure the results of operations.

---

Definitions:

Completing

The act of finishing a task or bringing something to an end.

Business Communication

The sharing of information between people within and outside the organization that is performed for the commercial benefit of the organization.

General Category

A broad classification or grouping that encompasses a wide range of items, concepts, or phenomena sharing common characteristics.

Business Messages

Communication conveyed through various formats (emails, memos, reports) intended for business contexts.