Under Certain Circumstances a Government Might Use Standards Established by Which

question 43

Multiple Choice

Under certain circumstances a government might use standards established by which of the following standard-setting bodies?

• A)GASB.
• B)FASB.
• C)AICPA.
• D)All of the above.

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Definitions:

Year-End Adjustment

Accounting entries made at the end of an accounting period to update accounts for accurate financial reporting.

Insurance Policy

A contract between an insurer and a policyholder that outlines the terms under which the insurer agrees to compensate the policyholder for specific losses.

Net Income

The total profit of a business after all expenses, taxes, and costs have been subtracted from total revenue.

Adjusted Trial Balance

A trial balance prepared after adjusting entries are made, used to verify the balance of debits and credits.