What Is the Primary Reason That Governmental Entities Use Fund

question 38

Multiple Choice

What is the primary reason that governmental entities use fund accounting?

• A) Fund accounting is required by law.
• B) Fund accounting is required by GAAP.
• C) Fund accounting promotes control and accountability over restricted resources.
• D) Fund accounting promotes better control over operating activities.

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Definitions:

Discriminatory Practices

Actions or policies that treat individuals or groups unfairly based on characteristics such as race, gender, age, or sexual orientation.

Outsourced Suppliers

Third-party companies or individuals that provide goods or services to another company under contract.

Liable

Being legally responsible or obligated to provide compensation for harm, damage, or loss caused by one’s actions or negligence.

Marginal Volunteer

A term that could refer to volunteers who contribute minimally or are on the fringe of volunteer activities, possibly due to limited availability or specific interests. NO.