Which of the Following Statements Is Not a True Statement

question 6

Multiple Choice

Which of the following statements is not a True statement about expenses that are directly related to a government function or program?

• A) They are reported in the government-wide statement of activities at the government-wide level.
• B) They include expenses that are specifically associated with a function or program.
• C) They include interest on general long-term liabilities.
• D) They include depreciation expense on capital assets that are clearly identified with a function or program.

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their completion and the costs necessary to make the sale.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services rendered on credit.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that is not expected to be collected.

Subsidiary Ledger

A ledger that contains accounts of a single type. Example: The accounts receivable subsidiary ledger records all credit customers.