Which of the Following Statements Is True Regarding Governmental Fund

question 46

Multiple Choice

Which of the following statements is true regarding governmental fund financial statements?

• A) Governmental fund financial statements report a government's activities and financial position as a whole.
• B) Governmental fund financial statements should tell the amount spent this year on such services as public safety, education, health and sanitation, and the construction of a new road.
• C) Governmental fund financial statements utilize the accrual basis of accounting much like any for-profit entity.
• D) Governmental fund financial statements help to determine whether the government's overall financial position improved or deteriorated.
• E) Governmental fund financial statements report all assets and liabilities in a way comparable to business-type accounting.

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Definitions:

Ebbinghaus

A psychologist who pioneered the experimental study of memory and is best known for his discovery of the forgetting curve and the spacing effect.

Forgetting Curve

A graphical representation of the decline in memory retention over time, showing how information is lost when there is no attempt to retain it.

Newly Learned Information

Knowledge or data that has been recently acquired through learning or education.

Rapid

Occurring in a short time or at a fast pace, often used to describe movements, changes, or reactions.