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:

Consolidated Figures

Financial data that combines information from separate entities into a single set of statements, used for overall analysis.

Consolidation Worksheet

A tool used in accounting to prepare the financial statements of a parent company and its subsidiaries, merging their assets, liabilities, and other financial items into a single set of statements.

Fair Value

The financial return from selling an asset or expense for transferring a liability in a regulated exchange with market entities on the date of appraisal.