Which of the Following Is NOT True About Cash Basis

question 46

Multiple Choice

Which of the following is NOT true about cash basis budgeting?

• A) Cash basis budgeting permits a government to balance its budget by delaying cash disbursements.
• B) Cash basis budgeting permits a government to balance its budget by advancing the recognition of revenue.
• C) Cash basis budgeting encourages interperiod equity.
• D) Cash basis budgeting complicates financial accounting and reporting.

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Definitions:

Transmitter

A device or system that sends out signals, messages, or other forms of communication.

Sum-Of-The-Years-Digits

A depreciation method that accelerates the rate of depreciation, basing it on a fraction that decreases annually.

Scrap Value

The estimated resale value of an asset at the end of its useful life.

Heavy Equipment

Larger, more specialized pieces of machinery used in construction, mining, and heavy industry, such as bulldozers, cranes, and excavators.