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

question 12

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 all taxes as general revenues
• D) Indirect program expenses may not be allocated to the other functional areas

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Definitions:

Conglomerate Merger

A union of companies engaged in entirely different businesses, often to diversify portfolio risks and leverage managerial expertise across industries.

Antitrust Scrutiny

The examination and monitoring of companies and their practices by government agencies to ensure they do not engage in anti-competitive behavior, violating antitrust laws.

Horizontal Merger

A merger between companies that are in direct competition with each other, operating in the same industry and at the same stage of production.

Price-fixing

An illegal agreement among competitors to fix prices, set production levels, or divide markets, to ensure mutual economic benefit.