Which of the Following Statements Regarding Governments Is FALSE

question 52

Multiple Choice

Which of the following statements regarding governments is FALSE?

• A)Governments are dependent on the profitable sales of goods and services to finance their operations.
• B)Governments have the right to tax.
• C)As long as they are fiscally responsible, governments have the opportunity to issue significant amounts of debt in the capital markets at preferential interest rates.
• D)Governments and their agencies finance their operations by levying fees and incurring liabilities.

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Definitions:

Weighted Average Method

A cost accounting method that calculates the cost of goods sold and ending inventory based on the average cost of all goods available for sale.

Direct Labor

Direct labor refers to the work of employees directly involved in the production of goods or services, often considered variable costs.

Equivalent Units

A method used in managerial accounting to calculate the number of complete units that could have been produced given the total amount of materials and effort expended.

Production Period

The Production Period is the phase in a manufacturing process when resources are used to convert raw materials into finished products.