Generally Accepted Accounting Principles Applicable to State and Local Governments

question 17

Multiple Choice

Generally accepted accounting principles applicable to state and local governments require that

• A)Only governmental funds and proprietary funds should be provided.
• B)Only those funds required by law,GASB standards,and sound financial administration should be provided.
• C)Only those funds required by law should be provided.
• D)All categories of funds must be provided.

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Definitions:

Accounting Information System

A system of collecting, storing, and processing financial and accounting data that is used by decision-makers.

Cost Awareness

The consideration and understanding of the costs associated with conducting business and the impact on financial performance.

Fixed Structure

A term related to permanent assets and expenses that do not change in relation to business activity levels.

Manual Accounting Information System

A traditional system of accounting in which transactions are recorded and processed by hand without the use of automated software.