Which of the Following Is True

question 22

Multiple Choice

Which of the following is true?

• A) When the government undertakes an activity, we can be assured that all voters will gain.
• B) If a government activity is favored by most citizens, it must be productive.
• C) If most voters oppose a government activity, it must be counterproductive.
• D) When voters pay in proportion to benefits received, all voters will gain if the government activity is productive.

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Definitions:

Accrual Basis

An accounting method that recognizes revenue when earned and expenses when incurred, regardless of cash flow.

Recognizes Expenses

The accounting process of formally recording or acknowledging that an expense has occurred, typically impacting the profit and loss statement.

Fiscal Year

A twelve-month period used for accounting purposes and preparing financial statements, which may not align with the calendar year.

Accounting Period

An accounting period is a specific duration of time used to measure and report financial activity, such as monthly, quarterly, or annually.