According to GASB Standards Transfers Should Be Recognized

question 33

Multiple Choice

According to GASB standards transfers should be recognized

• A) When earned.
• B) When collected in cash.
• C) When authorized by the budget ordinance.
• D) In the period the interfund receivable and payable arise.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.

Annual Accounting Period

An annual accounting period is a 12-month period over which a company reports its financial performance and prepares financial statements.

LIFO Reserve

The difference between the cost of inventory calculated using the Last-In, First-Out (LIFO) method and the cost using the First-In, First-Out (FIFO) method.

Financial Statements

Documents that report on a company's financial performance, position, and cash flows, typically including the income statement, balance sheet, and statement of cash flows.