The Public Sector Accounting Board (PSAB)has Identified a Number of Characteristics

question 2

Multiple Choice

The Public Sector Accounting Board (PSAB) has identified a number of characteristics that differentiates governmental reporting from private sector reporting.Which of the following is one of those characteristics?

• A)The government's goal is to make a surplus.
• B)The focus of governmental capital spending is to maximize returns.
• C)Tangible capital assets are different in nature for governments.
• D)Governments have limited debt capacity.

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Definitions:

Foreclosed

A legal process where a lender takes control of a property after the borrower fails to make mortgage payments.

Vickrey Auction

A type of sealed-bid auction where the highest bidder wins but pays the price offered by the second-highest bidder.

Willingness To Pay

The maximum amount an individual is ready to spend to acquire a good or service, reflecting the value they assign to it.

Expected Revenue

The predicted amount of money that a business will receive from its sales over a certain period, usually calculated by multiplying expected sales by the price of goods or services.