GASB 31 "Accounting for Financial Reporting for Certain Investments and for External

question 56

Multiple Choice

GASB 31 "Accounting for Financial Reporting for Certain Investments and for External Reporting Investment Pools," establishes a general rule that government entities value investments in option contracts,open-ended mutual funds,and debt securities for balance sheet presentation at:

• A)lower of cost or market.
• B)fair value.
• C)cost.
• D)amortized cost.

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Definitions:

Exploration Stage

A phase in a process where options are researched, ideas are generated, and possibilities are considered before making a decision.

Political Context

The political environment and conditions that influence and shape actions, policies, and decisions.

Support Network

refers to a group of individuals or organizations providing emotional, informational, and practical assistance.

Reflection

The act of thinking deeply or carefully about something, often with the purpose of gaining better understanding or insight.