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

question 41

Multiple Choice

Which of the following is true regarding the Statement of Revenues,Expenses,and Changes in Net Assets for a public (government-owned) college?

• A) The modified accrual basis of accounting is used to determine the net increase or decrease in net assets.
• B) Auxiliary enterprise activities represent revenues and expenses related to units of the college that provide services to students on a user fee basis.
• C) Both of the above are true.
• D) Neither of the above is true.

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Definitions:

Maturity Value

The amount of money an investment will yield upon the expiration of an investment period.

Interest Rates

The cost of borrowing money or the payment received for deposit funds, typically expressed as a percentage rate over the period of one year.

Bond's Price

The price of a bond is the present value of its expected future cash flows, such as interest payments and the return of principal at maturity.

Interest Rate Price Risk

The risk that the value of an investment will decrease due to a change in interest rates.