Funds That Are Used to Account for Activities Similar to Those

question 139

Multiple Choice

Funds that are used to account for activities similar to those often engaged in by profit-seeking businesses are:

• A) Proprietary funds.
• B) Special revenue funds.
• C) Capital project funds.
• D) Agency funds.

Grasp the significance of management's intent in the classification and reporting of investment securities.

Understand how to record investments in equity securities with significant influence (20-50% ownership) using the equity method.

Discern the differences between temporary and other-than-temporary declines in the value of investments and their accounting treatment.

Understand the ethical guidelines and practice constraints as prescribed by the ACA Code of Ethics for counselors.

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Definitions:

Equity Theory

A concept in social psychology that explains how individuals perceive fairness in distribution of resources in interpersonal relationships.

Goal-Setting Theory

A psychological theory suggesting that establishing specific, measurable, achievable, relevant, and time-bound goals can significantly influence motivation and enhance performance.

Negative Reinforcement

A behavioral psychology term describing the strengthening of a behavior because a negative condition is stopped or avoided.

Desirable Behavior

Actions or conduct considered beneficial or appropriate within a specific context, often encouraged through positive reinforcement.