Which of the Following Is True Regarding the Governmental Fund

question 133

Multiple Choice

Which of the following is true regarding the governmental fund financial statements?

• A) The governmental fund financial statements include the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances.
• B) The governmental fund financial statements are prepared using the current financial resources measurement focus and the modified accrual basis of accounting.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Simple Interest Rate

The percentage of interest paid on the original principal amount of a loan or investment, not compounding over time.

Compound Interest

Interest on both the initial principal and the accumulated interest from previous periods on a deposit or loan.

Rates of Return

Financial returns or setbacks on an investment throughout a chosen timeframe, indicated as a percentage of the investment's original expenditure.

Future Value

The value of an existing asset at a future date based on an assumed rate of growth over time.