Which of the Following Statements Is(are)correct About the Funds Used

question 63

Multiple Choice

Which of the following statements is(are) correct about the funds used by governmental entities?
I.Funds are fiscal entities.
II.Funds are accounting entities.

• A)I only
• B)II only
• C)I and II
• D)Neither I nor II

Comprehend noncash investing and financing transactions and their disclosure requirements.

Understand the categorization of cash receipts and payments into operating, investing, and financing activities.

Recognize the criteria for an item to be classified as a cash equivalent.

Familiarize with the purpose and importance of preparing a statement of cash flows.

---

Definitions:

Initial Relationship

The beginning phase of a connection or association between individuals or entities.

Special Treatment

Provision of unique or preferential behavior towards an individual or group, differentiating them from others.

Exchanging Favors

The act of giving and receiving services, goods, or benefits among individuals or groups, often informally to maintain social bonds or strategic relationships.

Forming a Coalition

The process of bringing together multiple parties or groups with a common interest to achieve a specific goal or address a collective issue.