Which of the Following Is a Valid Argument for Separate

question 16

Multiple Choice

Which of the following is a valid argument for separate accounting principles for proprietary activities?

• A) Two separate measurement focuses and bases for accounting within the same set of financial statements are confusing.
• B) There are no clear-cut distinctions between business and non-business activities.
• C) The measurement focus on all economic resources is more consistent with the GASB's objectives that financial reporting should provide information to help determine whether current-year revenues were sufficient to pay for current-year services.
• D) Surveys of statement users indicate that information on depreciation is not of high priority to government decision makers.

---

Definitions:

Recognition

The process through which an entity is identified or acknowledged for what it is based on certain characteristics or by comparison with known entities.

State Finals

The ultimate or final competition or exam at the state level in various contexts such as sports, academics, or other competitive fields.

Self-actualization

Fulfilling one's inherent capabilities and talents, perceived as an essential aspiration or imperative present in everybody.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated to fulfill basic needs before moving on to other needs, culminating in self-actualization.