Proprietary Funds Utilize What Basis of Accounting

question 31

Multiple Choice

Proprietary funds utilize what basis of accounting?

• A) Modified accrual.
• B) Accrual.
• C) Cash.
• D) Budgetary.

---

Definitions:

Holder In Due Course

A legal term for someone who has acquired a negotiable instrument, like a check, in good faith and is entitled to payment.

Unauthorized Signature

A signature placed on a document by someone not explicitly authorized to do so by the person whose signature is forged.

Negotiable Instruments

Financial documents that guarantee the payment of a specified amount of money, either on demand or at a set time, with the payer named on the document.

Japanese Commercial Code

is a collection of laws that governs commercial transactions in Japan, including company law, commercial paper, and bankruptcy proceedings.