Which of the Following Is True Regarding the Balance Sheet

question 52

Multiple Choice

Which of the following is true regarding the Balance Sheet of a federal agency?

• A) The balance sheet is prepared using the economic resource measurement focus and accrual accounting.
• B) Assets are measured on the modified accrual basis.
• C) The difference between assets and liabilities is termed "Net Assets".
• D) Assets are separated between current and noncurrent.

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Definitions:

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.

Producing Goods

The process of creating tangible products that satisfy consumer needs and wants through the utilization of labor, capital, and raw materials.

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action or the benefits you miss out on when choosing one alternative over another.

Best Alternative

The Best Alternative usually refers to the most favorable option or choice that is available to an individual or organization from a set of possibilities.