In Order to Compute the Operating Ratio-Enterprise Funds, One Would

question 100

Multiple Choice

In order to compute the operating ratio-enterprise funds, one would look in the CAFR in which of the following sections?

• A) In the government-wide Statement of Net Position.
• B) In the proprietary funds Statement of Net Position.
• C) In the proprietary funds Statement of Revenues, Expenses, and Changes in Fund Net Position.
• D) In the proprietary funds Statement of Cash Flows.

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Definitions:

Agency Agreement

A legal contract creating a fiduciary relationship which empowers an agent to act on behalf of a principal in transactions.

Apparent Agency

A legal concept where a principal is liable for the acts of their agent, based on the appearance of authority the agent has been given, even if no actual authority was given.

Implied Agency

A form of agency relationship created by actions of the parties involved rather than a written agreement, suggesting one party can act on behalf of another.

Express Agency

An agency relationship created by an explicit written or oral agreement between the agent and the principal.