Which of the Following Is not True Regarding Permanent

question 9

Multiple Choice

Which of the following is not true regarding permanent funds?

• A) Permanent funds are considered governmental funds.
• B) Permanent funds use the current financial resources measurement focus and modified accrual basis of accounting.
• C) Permanent funds are appropriate when a gift must be invested and the proceeds used to benefit individuals or organizations.
• D) Major permanent funds would be reported in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances.

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Definitions:

Standard Deviation

A statistical measure of the dispersion of returns for a given security or market index, indicating how much returns can deviate from the average return.

Correlation

A statistical measure indicating the degree to which two variables' movements are associated with each other, ranging from -1 (perfect negative correlation) to 1 (perfect positive correlation).

Time Diversification

An investment strategy that spreads exposure across different periods to reduce risk associated with market volatility.

Standard Deviation

Standard deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of data values.