Which of the Following Is True Regarding the Reporting of Investments

question 130

Multiple Choice

Which of the following is true regarding the reporting of investments by state and local governmental units?

• A) Investments, for which a determinable fair value can be obtained, are to be reported at fair value.
• B) Realized and unrealized gains and losses are to be combined in the relevant operating statement (for example, the Statement of Changes in Fiduciary Net Assets).
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to assign overhead costs to products or job orders, based on a selected activity base.

Direct Labor-Hours

The total number of labor hours spent on producing a single unit of a product or service.

Fixed Manufacturing Overhead

Costs that do not vary with production volume, such as rent, salaries of permanent staff, and depreciation of factory equipment.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual units of production based on a certain activity base.