Because They Are Engaged in Business-Type Activities,governmental Health Care Organizations

question 76

True/False

Because they are engaged in business-type activities,governmental health care organizations use the accrual basis and economic resources measurement focus.

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Definitions:

Drawer

In financial transactions, the person who writes or the entity issuing a bill of exchange, cheque, or draft.

Internal Control

Processes designed to provide reasonable assurance regarding the effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws.

Safeguard

Measures or controls put in place to protect assets, including physical security and internal controls.

Signature Card

A document signed by an account holder at a financial institution that provides a specimen signature for the purpose of verifying future transactions.