The Accounting System Used by a State or Local Government

question 10

Multiple Choice

The accounting system used by a state or local government must make it possible

• A)To present fairly the financial position and results of financial operations of the government as a whole,as well as fund financial activity in conformity with GAAP,and to demonstrate compliance with finance-related legal and contractual provisions.
• B)To prepare financial statements as required by the Financial Accounting Standards Board.
• C)To prepare consolidated accrual basis statements for the government as a whole.
• D)To provide Web-based bond offering statements to investment firms.

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Definitions:

Nonrival

A characteristic of goods where one person's consumption does not diminish the ability of others to consume the same good.

Social Costs

The total cost to society, including both the private costs borne by producers and also any external costs to others not involved in the transaction.

Social Benefits

The aggregate advantage to society derived from the production or consumption of a product, encompassing both individual benefits and any additional external advantages.

Pay-per-view Movies

A service that allows consumers to pay for individual movies to watch rather than subscribing to a broad service offering.