GASB Standards Provide That Accounting Systems of Governmental Funds Are

question 77

Multiple Choice

GASB standards provide that accounting systems of governmental funds are designed to measure:

• A) The extent to which financial resources obtained during a period are sufficient to cover claims incurred during that period against financial resources
• B) The acquisition and disposal of net assets
• C) The net financial resources available for future periods.
• D) The receipt and expenditure of resources. These resources are generally restricted to current assets and liabilities.

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Definitions:

Material Price Variance

The difference between the actual cost of materials used in production and the expected cost based on standard pricing.

Material Inventory

Stocks of raw materials, work-in-progress, and finished goods that a company holds at any given time to ensure smooth production and sales.

Material Price Variance

The variance that arises when the actual price paid for materials differs from the standard or expected price, affecting production costs.

Fixed Contract Price

A predetermined and agreed-upon amount that will be paid for the delivery of goods or services under a contract, regardless of changes in costs or expenses.