How Should Customer Deposits Held for Water Meters That Cannot

question 44

Multiple Choice

How should customer deposits held for water meters that cannot be spent for operating purposes be classified?

• A) As restricted cash in an Enterprise Fund.
• B) As both cash and a liability in an Agency fund.
• C) As Nonspendable fund balance in a Permanent Fund.
• D) Any of the above are acceptable alternatives.

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Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to what is considered normal or acceptable in a specific social context.

Social Pressure

The influence that is exerted on individuals or groups by others, often leading to conformity in behavior or attitudes.

Observational Learning

The process of learning behaviors through observing and imitating others, also known as social learning or modeling.

Attitude

A psychological construct that represents an individual's degree of like or dislike, favor or disfavor, towards an object, person, thing, or event.