Which of the Following Statements Is False Regarding Government-Wide Financial

question 77

Multiple Choice

Which of the following statements is false regarding government-wide financial statements?

• A) Government-wide financial statements report a government's activities and financial position as a whole.
• B) The government-wide financial statement approach helps users make long-term evaluations of the financial decisions and stability of the government.
• C) Government-wide financial statements focus on the short-term instead of the long-term.
• D) Government-wide financial statements assess the finances of the government in its entirety, including the year's operating results.
• E) The measurement focus of government-wide financial statements is on all economic resources and utilizes accrual accounting.

---

Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant portion of the product's cost.

Selling and Administrative Expenses

Costs related to selling a product and managing a business, excluding direct production costs.

Standard Cost

A predetermined cost of manufacturing, selling, or any business operation, which is used for budgeting and assessing performance.

Fixed Manufacturing Overhead

Refers to the consistent, non-variable costs associated with manufacturing a product, such as factory lease payments and salaries of permanent staff.