Statement I

question 62

Multiple Choice

Statement I.One unintended side effect of the Welfare Reform Act of 1996 was that the new rules may intimidate the number of eligible Americans from trying to receive food stamps and Medicaid.
Statement II: In 1996,for the first time since 1935,the federal government no longer guaranteed support to all America's children.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Statement of Financial Position

Another term for a balance sheet, detailing a company's assets, liabilities, and equity at a specific point in time.

Recognizing Revenue

The process of recording revenue in the accounting records once it is earned and realizable, in accordance with relevant accounting standards.

Performance Obligation

A commitment in a contract to transfer a good or service to a customer, for which a company must satisfy to recognize revenue.