Which of the Following Statements Is True Regarding Fund Financial

question 46

Multiple Choice

Which of the following statements is true regarding fund financial statements?

• A) Fund financial statements report a government's activities and financial position as a whole.
• B) Fund financial statements should tell the amount spent this year on such services as public safety, education, health and sanitation, and the construction of a new road.
• C) Fund financial statements utilize the accrual basis of accounting much like any for-profit entity.
• D) Fund financial statements help to determine whether the government's overall financial position improved or deteriorated.
• E) Fund financial statements report all assets and liabilities in a way comparable to business-type accounting.

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Definitions:

Insurance Claims

Requests made to an insurance company for payment based on the terms of an insurance policy.

Medical Practice

The profession or activity of providing care to patients, involving diagnosis, treatment, and prevention of diseases.

Filing Limit

The maximum time period allowed after an event within which legal proceedings may be initiated or claims must be submitted.

Insurance Company

A financial institution that provides coverage against certain risks in exchange for premium payments.