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:

Administrative Proceeding

A legal process conducted by a government agency to enforce its legal authority over certain matters.

Professional License

A certification granted by a professional organization or government body, evidencing one's ability to legally perform certain jobs or tasks.

Securities Laws

Regulations designed to protect investors, ensure fair trading, and prevent fraud in the marketplace for financial instruments such as stocks and bonds.

Sarbanes-Oxley Act

A United States federal law that set new or enhanced standards for all U.S. public company boards, management, and public accounting firms.