Which of the Following Is a Key Reason for Using

question 57

Multiple Choice

Which of the following is a key reason for using business-type accounting to account for proprietary fund activities?

• A) The modified accrual basis of accounting captures all the resources and obligations associated with an activity.
• B) Depreciation is not recognized in business-type accounting in governments and surveys of statement users indicate that information on depreciation is not of high priority to government decision makers.
• 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) Business-type accounting facilitates comparisons with governmental activities.

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Definitions:

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A form of legal protection provided by a government that excludes anyone other than the patent holder from making, using, or selling the invention for a set period of time.

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The additional market share and profits products earn because of the brand’s strength compared with that of competing products.

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The portion of a market controlled by a particular company or product, usually expressed as a percentage.