Which of the Following Statements Is Correct

question 27

Multiple Choice

Which of the following statements is correct?

• A) Because federal entities have both budgetary and financial reporting requirements, a dual-track accounting system is employed using budgetary and fiduciary accounts.
• B) The Statement of Budgetary Resources is optional. It is prepared using the budgetary basis and provides information on the status of budgetary resources.
• C) The AICPA establishes the accounting and reporting standards for the U.S. government overall and for federal agencies and departments.
• D) The AICPA's Code of Professional Conduct recognizes FASAB standards as the highest level of authoritative standard for federal government agencies.

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Risky Shift

Tendency for group discussion to produce group decisions that are more risky than the mean of members’ pre-discussion opinions, but only if the pre-discussion mean already favoured risk.

Pre-Discussion

A phase prior to formal discussions where initial opinions or subjects may be informally exchanged.

Groupthink

A psychological phenomenon where the desire for harmony and conformity in a group leads to irrational and dysfunctional decision-making outcomes.