Which of the Following Statements Concerning the Reporting of Internal

question 63

Multiple Choice

Which of the following statements concerning the reporting of internal balances by a government at the end of its fiscal year is True?

• A) The internal balances amounts reported in the balance sheet columns represent activity among governmental funds.
• B) The internal balances amounts reported in the statement of net position columns represent activity between governmental activities and business-type activities.
• C) The internal balances amounts are reported in both the asset and liability sections on the statement of net position.
• D) The internal balances amounts reported represent the difference between interfund transfers in and interfund transfers out.

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Definitions:

Secondary Sector

The part of the economy that includes industries involved in the processing, transformation, fabrication, or construction of materials and products from raw materials.

Rational-Legal

An authority system based on legal rules and regulations, and the rationality of law, often associated with modern bureaucracies.

Charismatic Authority

The exercise of power as legitimated through the personal magnetism of individuals who compel people to believe in them and grant them their support.

Traditional Authority

The exercise of power as legitimated by long-established cultural patterns and traditions.