Which of the Following Is not true Regarding the Statement

question 69

Multiple Choice

Which of the following is not true regarding the Statement of Revenues, Expenses and Changes in Net Position for a public college?

• A) The accrual basis of accounting is used to measure revenues and expenses.
• B) Encumbrances are recorded at the time purchase orders are issued.
• C) Depreciation expense is recorded.
• D) All of the above are true.

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, representing factors that affect all companies such as economic, political, or social changes.

Diversifiable Risk

The portion of an investment's risk that can be reduced or eliminated through portfolio diversification, also known as unsystematic risk.

Unsystematic Risk

The type of risk that is unique to a specific company or industry, unpredictable and can be mitigated through diversification.

Minable Gold Reserves

The quantity of gold that is economically viable to extract from the earth's crust.