Which Statement Is False Regarding the Government-Wide Statement of Net

question 48

Multiple Choice

Which statement is false regarding the government-wide Statement of Net Assets?

• A) the purpose of the Statement of Net Assets is to report the economic resources of the government as a whole.
• B) assets are reported excluding capital assets.
• C) capital assets are reported net of depreciation.
• D) investments are reported at fair value rather than historical cost.
• E) Business-type activities include Enterprise Funds.

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Definitions:

Profit-maximizing Condition

The state or point at which a business achieves the highest level of profit with the least amount of cost, often by equating marginal cost and marginal revenue.

Role Of Government

The activities undertaken by a government to regulate and guide the economy, including policy-making, taxation, and spending.

Unemployment Level

The number or percentage of the labor force that is without work but actively seeking employment.

Real Income

Real income refers to the amount of goods and services that can be bought with a given amount of money, taking into account inflation.