Which Statement Is False Regarding the Balance Sheet for Fund

question 4

Multiple Choice

Which statement is false regarding the Balance Sheet for Fund Financial Statements?

• A) The Balance Sheet for Fund Financial Statements measures only current financial resources of the governmental entity.
• B) The Balance Sheet for Fund Financial Statements uses the modified accrual method for timing purposes.
• C) Capital Assets are not reported on the Balance Sheet for Fund Financial Statements.
• D) The Balance Sheet for Fund Financial Statements measures only long-term financial resources of the governmental entity.
• E) Long-term debts are not reported on the Balance Sheet for Fund Financial Statements.

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Definitions:

Financial Accounting Standards Board

An independent nonprofit organization responsible for establishing and improving financial accounting and reporting standards within the United States.

Segment Reporting

The practice of dividing a company's operations into segments and reporting financial data for each segment separately to provide insights into the performance of different areas of the business.

Disaggregated Financial Data

Refers to financial information that is broken down into smaller components to provide detailed insight into the financial condition and performance of a company.

Risk of Investing

The potential for an investor to experience losses due to factors affecting overall financial market performance or specific asset classes.