The Statement Concerning a Funds Statement Based on the Total

question 1

Multiple Choice

The statement concerning a funds statement based on the total resources concept of funds that is incorrect is:

• A) It excludes internal transactions such as depreciation
• B) The total resources concept of funds is the broadest concept
• C) Any transaction which increases liabilities or equity is a source of funds
• D) Any transaction which reduces assets is a use of funds

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Definitions:

Lost Property

Property that the owner has involuntarily parted with and then cannot find or recover.

Mislaid Property

Property that is intentionally set down by someone who then forgets to retrieve it, differing from lost or abandoned property.

Prize-Winning Horse

A horse that has won awards or recognition in competitive events or shows due to its performance, breed qualities, or other characteristics.

Voluntarily Transfers

The act of willingly transferring ownership or rights of an asset or property from one party to another without coercion.