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:

Standard Error

A measure that quantifies the variation or dispersion of a sample mean from the population mean.

Population Proportion

The fraction or percentage of a population that possesses a certain property or characteristic.

Control Chart

A statistical tool used in quality control processes to monitor, control, and ascertain the stability of a process.

Defective Candy Bars

Candy bars that do not meet the production quality standards due to flaws.