If a Government Failed to Report Infrastructure Assets, the Auditor

question 108

True/False

If a government failed to report infrastructure assets, the auditor would have to express an adverse opinion on the fund level financial statements.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Periodic Inventory System

A method of inventory valuation for financial reporting purposes where a physical count of inventory is performed at specific intervals, and cost of goods sold is calculated at the end of the accounting period.

Merchandise Purchased

The total cost of goods bought for resale during a specific accounting period.

Purchases Discounts

A reduction in the price of goods that a buyer can take advantage of if they pay by a certain date.