Which of the Following Is True Regarding the Statement of Revenues,Expenses

question 36

Multiple Choice

Which of the following is true regarding the Statement of Revenues,Expenses and Changes in Net Assets for a public college reporting as a special purpose entity engaged in business type activities only?

• A) Full accrual accounting is used to measure revenues and expenses.
• B) Grants are treated as operating revenue and contributions as non-operating revenue.
• C) Both of the above are true.
• D) Neither of the above is true.

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Definitions:

Beginning Inventory

The value of inventory on hand at the start of an accounting period, consisting of raw materials, work-in-process, and finished goods.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the sum of beginning inventory plus purchases minus cost of goods sold.

Raw Materials Production Needs

The essentials and quantities of raw materials required to fulfill the production schedule for goods.

Raw Material Purchases

The total cost of materials bought that are intended to be used in the production of goods.