Governmental Accounting Normally Does Not

question 43

Multiple Choice

Governmental accounting normally does not

• A)use separate funds to account for various activities
• B)incorporate budgetary accounts into the accounting system
• C)measure the amount of profit earned during a fiscal year
• D)focus on flows of current financial resources

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Definitions:

Net Operating Income

A company's total income from operations, excluding expenses and taxes.

Facility Expenses

Costs related to the physical space where business operations occur, such as rent, utilities, and maintenance.

Manufacturing Overhead

All indirect manufacturing costs, including indirect labor, materials, and utilities necessary for production, but not directly associated with specific units.

Planning Budget

A budget created at the beginning of the budgeting period, reflecting the expected costs and revenues based on forecasted levels of activity.