Which of the Following Is True Regarding Other Financing Sources

question 18

Multiple Choice

Which of the following is true regarding other financing sources and other financing uses?

• A) Both must be reported separately from revenues and expenditures in the statement of revenues,expenditures,and changes in fund balances.
• B) These terms are used to distinguish program revenues or expenses from general revenues or expenses.
• C) These terms are used for minor revenue or expenditure items that are peripheral to the government's mission.
• D) Other financing sources are equivalent to gains and other financing uses are equivalent to losses.

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Definitions:

Marginal Revenue

The additional income received from selling one more unit of a product or service.

Higher Price Segment

Refers to the market segment that is targeted with products or services priced at a premium, often reflecting higher quality or value.

Asset Reserved

Assets that are held or allocated for a specific purpose or future use.

Seasonal Peaks

Periods of high demand or activity in a business or market that correspond with specific seasons or times of the year.