Which of the Following Statements Is True Regarding Fund-Based Financial

question 46

Multiple Choice

Which of the following statements is true regarding fund-based financial statements?

• A)Fund-based financial statements report a government's activities and financial position as a whole.
• B)Fund-based 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)Fund-based financial statements utilize the accrual basis of accounting much like any for-profit entity.
• D)Fund-based financial statements help to determine whether the government's overall financial position improved or deteriorated.
• E)Fund-based financial statements report all assets,liabilities in a way comparable to business-type accounting.

Calculate the number of possible outcomes using the multiplication principle.

Understand the concept of complementary events and their probability sum.

Apply the addition and multiplication laws of probability.

Compute probabilities using the classical, relative frequency, and subjective methods.

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Definitions:

Gross Price Method

An inventory valuation method that records purchases at the gross invoice price without deducting any cash discounts.

FIFO

FIFO (First-In, First-Out) is an inventory cost valuation method assuming that the oldest items of inventory are sold first and newer inventories last, affecting the cost of goods sold and ending inventory valuation.

LIFO

Last In, First Out, an inventory valuation method that assumes goods purchased last are the first to be used or sold, affecting cost of goods sold and inventory value.

Average

A statistical measure that denotes the central value of a set of numbers.