Which of the Following Is True Regarding the Governmental Fund

question 28

Multiple Choice

Which of the following is true regarding the governmental fund statements?

• A) The governmental fund statements include discretely presented component units that are governmental in nature.
• B) The governmental fund statements are prepared using the current financial resources measurement focus and modified accrual accounting.
• C) Both of the above.
• D) Neither of the above.

---

Definitions:

Drafts

Preliminary versions of documents or plans that are subject to revision or editing before the final version is produced.

Negotiability

The ability of a document or instrument to be legally and freely transferred from one party to another.

Contractual Assignment

The transfer of rights or duties under a contract from one party to another.

Negotiable Instrument

A document in writing that ensures a certain sum of money will be paid, whether immediately upon request or at a predetermined date, with the document specifying the individual responsible for the payment.