What Basis of Accounting Is Used to Account for the Transactions

question 32

Multiple Choice

What basis of accounting is used to account for the transactions of a government's permanent fund?

• A) Full accrual basis of accounting.
• B) Modified accrual basis of accounting.
• C) Cash basis of accounting.
• D) Budgetary basis of accounting.

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Definitions:

Economic Relationship

Describes the connections and interactions between different economic entities, such as countries, organizations, or individuals, usually in terms of trade, investment, and financial exchanges.

United States

A country in North America consisting of 50 states, known for its large economy, diverse population, and significant cultural and political influence worldwide.

Mexico

A country in North America, bordered by the United States to the north, the Pacific Ocean to the south and west, Guatemala, Belize, and the Caribbean Sea to the southeast, and the Gulf of Mexico to the east.

1910

Refers to the year which marked significant events globally such as the start of the Mexican Revolution and advancements in technology and society at the early 20th century.