Which of the Following Statements Is True

question 45

Multiple Choice

Which of the following statements is true?

• A)The deferral method of accounting generally results in a lower level of revenue than the restricted fund method.
• B)The deferral method of accounting generally results in a higher level of revenue than the restricted fund method.
• C)The deferral method of accounting generally results in a higher level of revenue than the restricted fund method only if capital asset amortization is involved.
• D)The deferral method of accounting results in the same amount of revenue as the restricted fund method.

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Definitions:

Strategy

A plan designed to achieve specific long-term objectives, often involving a series of actions or tactics.

Advertising

The action of calling public attention to products, services, or events through paid announcements by an identified sponsor.

Economic Effect

The impact of a decision or event on the economy, which can be observed through indicators like GDP, employment rates, and inflation.

Costs

The value of everything a firm sacrifices to produce a good or service, including material, labor, and other resources.