Which Statement Is Not Correct

question 61

Multiple Choice

Which statement is not correct?

• A) Governmental funds account for expenditures of financial resources rather than matching revenues and expenses.
• B) The Fund Balance Reserved for Encumbrances account is not closed at the end of a fiscal year.
• C) Revenues from licenses and permit fees are recognized when received in cash if using the modified accrual basis of accounting for governmental funds.
• D) A fund is an independent accounting entity composed of cash and other financial resources, segregated for the purpose of carrying on specific activities and objectives.
• E) Commitments for purchase orders are recorded as expenses.

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Definitions:

Observable Responses

Behaviors or actions that can be seen and measured directly, used in psychology and behavioral sciences to study organisms.

Cognitive Perspective

A psychological method focusing on the internal workings of the mind as the fundamental aspect in explaining human actions.

Interpret

To explain or determine the meaning of something, often requiring analysis of language, symbols, or actions to understand the underlying significance.

Experiences

Events or occurrences that leave an impression on someone, contributing to their knowledge or altering their perception.