Agency Fund Assets and Liabilities Are to Be Recognized

question 28

Multiple Choice

Agency fund assets and liabilities are to be recognized :

• A) At the time the government becomes responsible for the assets.
• B) When they are available and measurable.
• C) Only in the government-wide financial statements.
• D) When the earnings process is complete and collection is reasonably assured.

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Definitions:

Objective Approach

A method of decision-making or evaluation based on factual evidence and without the influence of personal feelings or biases.

Balanced Discussion

A conversation or dialogue that presents multiple perspectives in an unbiased and even-handed manner.

Legal Document

An official paper that records agreements, understandings, rights, or obligations enforceable by law.

Legal Correspondence

Communication in various forms, such as letters, emails, or memos, that relates to legal matters or proceedings.