Under GASB Statement 34, Modified Accrual Accounting Would Be Found

question 25

Multiple Choice

Under GASB Statement 34, modified accrual accounting would be found in the:

• A) Government-wide financial statements only
• B) Governmental fund financial statements only
• C) Governmental and fiduciary fund financial statements only
• D) Governmental, proprietary and fiduciary fund financial statements but not in the government-wide financial statements

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Definitions:

APT

The Arbitrage Pricing Theory, a model that determines the required return on an asset by considering various macroeconomic factors.

CAPM

The Capital Asset Pricing Model, a financial theory that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Firm-Specific Factors

Unique characteristics or circumstances affecting a company that can influence its stock's performance, unrelated to the overall market movements.

Common Macroeconomic Factor

Economic variables that affect a broad segment of the economy and consequently can influence the performance and value of financial investments.