A Government Reports the Utility Services It Provides to Citizens

question 51

Multiple Choice

A government reports the utility services it provides to citizens in a proprietary fund. Which accounting standards must the proprietary fund apply?

• A) All FASB pronouncements, unless a FASB pronouncement conflicts with or contradicts a GASB pronouncement.
• B) All FASB pronouncements issued prior to November 30, 1989, as well as any post-November 30, 1989 pronouncements specifically adopted by GASB.
• C) All GASB pronouncements.
• D) All FASB and AICPA standards incorporated into GASB Statement No. 62, as well as any FASB pronouncements issued after November 30, 1989 that have been specifically adopted by the GASB.

---

Definitions:

Henry Fayol

A French engineer and scholar, recognized as one of the pioneers of modern management methodologies, noted for his development of a general theory of business administration.

Diversity

The inclusion of individuals from various backgrounds, beliefs, and cultures, contributing to a rich, multidimensional environment.

Unity of Command

A principle in management and military stating that each employee should receive orders from only one superior to avoid confusion and conflict.

Employee Confusion

A state in which workers are uncertain about expectations, roles, or tasks.