Which of the Following Statements Is Not True Regarding Agency

question 31

Multiple Choice

Which of the following statements is not true regarding agency funds?

• A) Agency funds use modified accrual accounting.
• B) Agency funds have only assets and liabilities; no fund equities, revenues, or expenditures are recorded.
• C) Agency funds are reported in the fiduciary funds Statement of Fiduciary Net Assets.
• D) None of the above; all are true.

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Definitions:

NAL

Net Advantage to Leasing, a financial calculation to determine whether leasing an asset is more cost-effective than purchasing it.

International Accounting Standards

A set of accounting guidelines that dictate how financial transactions and statements should be recorded and reported across different countries.

IAS 17

An international accounting standard that provides guidance on the accounting and financial reporting of leases.

Unqualified Audit Report

An auditor's report that is issued when an auditor determines that all of the financial records provided by a company are free of material misstatement, indicating a clean bill of health.