Which of the Following Is True Regarding the Government-Wide Statement

question 84

Multiple Choice

Which of the following is true regarding the government-wide Statement of Activities?

• A) The government-wide Statement of Activities may reflect expenses either by function (general government, public safety, etc.) or by object or natural classification (salaries, supplies, etc.).
• B) The government-wide Statement of Activities is prepared using the modified accrual basis of accounting for governmental activities and using the accrual basis of accounting for business-type activities.
• C) The government-wide Statement of Activities reflects taxes as general revenues.
• D) Indirect program expenses may not be allocated to the other functional areas.

---

Definitions:

Unaudited Financial Statements

Financial reports not examined and verified by an independent third party (an auditor).

Liable

Responsible by law; legally answerable.

Foreseeable

Foreseeable refers to the ability to predict or anticipate an event or outcome based on current knowledge or reasoning.

Negligence

The failure to exercise the level of care that a reasonably prudent person would in similar circumstances, leading to harm or damage.