Which of the Following Statements Is not Correct

question 38

Multiple Choice

Which of the following statements is not correct?

• A) The government-wide statements are separated into governmental activities and business-type activities
• B) Discretely presented component units are also separately displayed in the fund basis statements, but not the government-wide statements.
• C) The governmental-type funds' Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances serve as inputs to the governmental activities sections of the government-wide statements.
• D) The fund-basis statements reflect modified accrual accounting, they must be adjusted to the accrual basis.

---

Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated after considering the cost of goods sold and any new purchases.

Inventory Management

The process of ordering, storing, using, and selling a company's inventory. This includes the management of raw materials, components, and finished products, as well as warehousing and processing such items.

Days' Sales

A measure that indicates how many days, on average, it takes a company to collect revenue after a sale has been made.

Retail Method

An estimating method used to calculate inventory cost, based on the retail price, to determine cost of goods sold and ending inventory.