Which of the Following Statements Is True Regarding Proprietary Funds

question 85

Multiple Choice

Which of the following statements is true regarding proprietary funds?

• A) Accruals and deferrals common to business accounting are recorded in proprietary funds.
• B) Proprietary funds use the modified accrual basis of accounting
• C) GASB standards require budget-actual reporting for proprietary funds.
• D) The purchase of a capital asset is recorded as an expenditure in proprietary funds.

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Definitions:

Scienter

A legal term that refers to the knowledge of wrongdoing or false representation, implying a degree of intent in fraudulent acts.

Contrast Effect

A cognitive bias where the evaluation of something is influenced by comparisons with recently encountered contrasting objects or events.

Perceptual Bias

The tendency for perception to be affected by one's experiences, beliefs, or expectations, leading to a distorted or incomplete understanding of reality.

Oral Communication

The exchange of information or ideas through spoken words.