Which of the Following Is False with Respect to Special

question 20

Multiple Choice

Which of the following is false with respect to Special revenue funds?

• A) Resources appropriately reported within proprietary or fiduciary funds are excluded from special revenue funds.
• B) A special revenue funds would be used to account for taxes which are required by state law to be used by the government to support specific activities.
• C) Special revenue funds may be used for any designated purpose to segregate revenues and ensure compliance with restrictions.
• D) None of the above

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Definitions:

Apparent Authority

The appearance of authority given to an agent by his or her principal, as perceived by a reasonable third party.

Winding Up

The process of dissolving a business, paying off debts, and distributing the remaining assets to shareholders or owners.

Apparent Authority

The power that a third party reasonably believes an agent has based on the principal's behavior, leading the third party to conclude that the agent is authorized to act.

Statement of Dissolution

A document filed to officially dissolve a business entity, such as a partnership or corporation.