In Both the Fund Statements and the Government-Wide Statements, Business-Type

question 40

True/False

In both the fund statements and the government-wide statements, business-type activities and internal service funds are on a full accrual basis, and their measurement focus is on all economic resources.

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Definitions:

Noncumulative Preferred Shares

Type of preferred stock where dividends not paid in a particular year do not accumulate and must be forfeited.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Shareholders' Equity

Shareholders' equity represents the residual interest in the assets of a corporation after deducting its liabilities, indicating the ownership interest of the shareholders.

2-For-1 Stock Split

A corporate action where a company doubles its number of outstanding shares, halving the stock price, effectively giving shareholders two shares for every one they owned.