Which of the Following Is True with Respect to Special

question 31

Multiple Choice

Which of the following is true with respect to Special revenue funds?

• A) Special revenue funds are used when it is desirable to provide separate reporting of resources that are restricted or committed as to expenditure for purposes other than debt service or capital projects.
• B) Special revenue funds are used when it is desirable to provide separate reporting of resources that are designated for specific purposes.
• C) Special revenue funds are used when it is desirable to provide separate reporting for funds provided by other governments to support capital projects.
• D) Both B and C

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Definitions:

Sole Proprietorship

A business structure where a single individual owns, manages, and is personally responsible for all aspects of the business, including liabilities.

Liability

A legal obligation or debt that an entity is required to pay to another.

Financial Capital

Economic resources measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services.

Profit Rate

The ratio of net profits to total revenues of a business, indicating its efficiency at generating profit.