The Governmental Accounting Standards Board Is Assigned Responsibility for Setting

question 22

Multiple Choice

The Governmental Accounting Standards Board is assigned responsibility for setting accounting and financial reporting standards for

• A) Governments such as federal agencies, states, cities, counties, villages, and townships.
• B) State and local government entities and governmentally-related units and agencies, such as utilities, authorities, hospitals, and colleges and universities.
• C) Not-for-profit organizations.
• D) State and local governments and all not-for-profit organizations.

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Definitions:

Quantity Theory

An economic theory that suggests the general price level of goods and services is directly proportional to the amount of money in circulation.

Laissez Faire

An economic philosophy advocating for minimal governmental intervention in the marketplace and the free operation of supply and demand forces.

Say's Law

The principle that supply creates its own demand, meaning production necessarily leads to an equivalent level of demand in the economy.

Monetarists

Monetarists believe in the control of the supply of money as the primary method of controlling inflation and stabilizing the economy.