Which Statement Is Not Correct

question 61

Multiple Choice

Which statement is not correct?

• A) Governmental funds account for expenditures of financial resources rather than matching revenues and expenses.
• B) The Fund Balance Reserved for Encumbrances account is not closed at the end of a fiscal year.
• C) Revenues from licenses and permit fees are recognized when received in cash if using the modified accrual basis of accounting for governmental funds.
• D) A fund is an independent accounting entity composed of cash and other financial resources, segregated for the purpose of carrying on specific activities and objectives.
• E) Commitments for purchase orders are recorded as expenses.

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Definitions:

Philosophy

A system of beliefs or ideas concerning the nature of existence, knowledge, values, reason, mind, and the universe.

German works council

Employee representative bodies in Germany that work with employers to discuss and resolve workplace issues, distinct from trade unions but also focusing on workers' rights.

Labor union

An organized association of workers formed to protect and further their rights and interests.

French unions

Labor unions in France, known for their significant role in national labor policies and practices, and renowned for a high level of activism and participation in protests and strikes.