Which of the Following Funds Is Accounted for on the Modified

question 36

Multiple Choice

Which of the following funds is accounted for on the modified accrual basis of accounting?

• A)General fund.
• B)Internal service fund.
• C)Proprietary fund.
• D)Pension trust fund.

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Definitions:

Output

The total amount of goods or services produced by a company, industry, or economy.

Increasing Cost Industry

An industry in which production costs rise as output increases, often due to factors like limited resources or higher prices for inputs.

Constant Cost Industry

An industry in which the costs of production do not change as the industry's output changes, maintaining the same unit cost for production regardless of scale.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices over a given period of time.