What Is the Underlying Reason a Governmental Unit Uses Separate

question 14

Multiple Choice

What is the underlying reason a governmental unit uses separate funds to account for its transactions?

• A) Governmental units are so large that it would be unduly cumbersome to account for all transactions as a single unit.
• B) Because of the diverse nature of the services offered and legal provisions regarding activities of a governmental unit, it is necessary to segregate activities by functional nature.
• C) Generally accepted accounting principles require that nonbusiness entities report on a funds basis.
• D) Many activities carried on by governmental units are short-lived and their inclusion in a general set of accounts could cause undue probability of error and omission.

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Definitions:

Groups Behave

The collective actions or reactions of individuals within a group, influenced by the group's norms, dynamics, and goals.

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The process of giving and receiving data, knowledge, or feedback between individuals or groups.

Human Relations

Interpersonal interactions and relationships, including the social and emotional aspects, within the context of the workplace or broader society.

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The ability to recognize, understand, manage, and utilize emotions effectively in oneself and others.