What Basis of Accounting Is Used in the Statement of Net

question 14

Multiple Choice

What basis of accounting is used in the Statement of Net Costs prepared by a federal agency?

• A)the budgetary basis
• B)the accrual basis
• C)the cash basis
• D)the modified accrual basis

---

Definitions:

Public Policy

A course of action or regulations adopted by government to address societal issues, guide decisions, and achieve rational outcomes.

Legislative Environment

The legal and regulatory framework within which an organization operates, influenced by laws and policy-making bodies.

External Political Advocacy

Activities conducted outside of an organization to influence political decisions or policies in favor of a particular cause or interest.

Statutory Law

Statutory law consists of laws and statutes that have been enacted by legislative bodies, such as Congress or state legislatures, formally codifying regulations and legal standards.