Question : 11) Which one of the following statements the MOST accurate? A) : 1303646

11) Which one of the following statements is the MOST accurate?

A) Devaluation reflects a deliberate government decision.

B) Depreciation reflects a deliberate government decision.

C) Devaluation reflects a deliberate government decision while depreciation is an outcome of government actions and market forces acting together.

D) Depreciation reflects a deliberate government decision while devaluation is an outcome of government actions and market forces acting together.

E) Devaluation and depreciation have the same meaning and the same causes.

12) Which one of the following statements is the MOST accurate?

A) Revaluation reflects an outcome of government actions and market forces acting together while appreciation reflects a deliberate government decision.

B) Revaluation reflects a deliberate government decision while appreciation is an outcome of government actions and market forces acting together.

C) Revaluation reflects a deliberate government decision while appreciation is an outcome of government actions.

D) Revaluation and appreciation have the same meaning and the same causes.

E) Appreciation reflects a deliberate government decision while revaluation is an outcome of government actions and market forces acting together.

13) Under fixed exchange rates, which one of the following statements is the MOST accurate?

A) Devaluation causes a decrease in output, a decrease in official reserves, and a contraction of the money supply.

B) Devaluation causes a rise in output, a rise in official reserves, and an expansion of the money supply.

C) Devaluation causes a rise in output and a rise in official reserves.

D) Devaluation causes a rise in output and an expansion of the money supply.

E) Devaluation causes a rise in official reserves, and an expansion of the money supply.

14) Under fixed exchange rates, which one of the following statements is the MOST accurate?

A) Devaluation causes a rise in output.

B) Devaluation causes a decrease in output.

C) Devaluation has no effect on output.

D) Devaluation causes a rise in output and a decrease in official reserves.

E) Devaluation causes a decrease in output and in official reserves.

15) Under fixed exchange rates, which one of the following statements is the MOST accurate?

A) Devaluation causes a reduction of the money supply.

B) Devaluation has no effect on the stock of money.

C) Devaluation causes an expansion of the money supply.

D) Devaluation causes a reduction in output.

E) Devaluation causes a reduction in official reserves.

16) The main reason(s) why governments sometimes chose to devalue their currencies is (are)

A) devaluation makes domestic goods more expensive in relation to foreign goods.

B) devaluation makes domestic services more expensive in relation to foreign services.

C) devaluation increases foreign reserves held by the central bank.

D) devaluation improves the current account and increases foreign reserves held by the central bank.

E) devaluation hurts foreign currencies.

17) Please draw a figure illustrating the actions the central bank must take to maintain a fixed exchange rate following an increase in output.

Continue to order Get a quote

July 1, 2023

50.Which of the following statements is true regarding proprietary funds?

A)Accruals and deferrals common to business accounting are recorded in proprietary funds.

B)Proprietary funds use the modified accrual basis of accounting

C)GASB standards require budget-actual reporting for proprietary funds.

D)The purchase of a capital asset is recorded as an expenditure in proprietary funds.

51.Centralized purchasing, computer services, and janitorial services are examples of activities that are commonly reported in:

A) Enterprise funds.

B) Capital project funds.

C) Debt service funds.

D) Internal service funds.

52.Internal service funds account for

A) Activities that produce goods or services to be provided to other governmental units on a cost reimbursement basis.

B) Activities that produce goods or services to be provided to outside consumers units on a cost reimbursement basis.

C) Both A and B.

D) None of the above.

53.An example of an activity that would not normally be accounted for in an internal service fund would be:

A)Motor pool.

B)Garbage collection.

C)Print shop.

D)Central storeroom.

54.An example of an activity that would not normally be accounted for in an enterprise fund would be:

A)Swimming pool.

B)Motor pool.

C)Airport.

D)Lottery.

55.Which financial statements are required for a proprietary fund?

A)Income statement, Statement of Net Assets and Statement of Cash Flows

B)Statement of Revenues, Expenses and Changes in Net Assets, Statement of Net Assets and Statement of Cash Flows

C)Statement of Revenues, Expenses and Changes in Fund Balance and Statement of Net Assets, and Statement of Cash Flows

D)Statement of Revenues, Expenses and Changes in Net Assets and Statement of Net Assets

56.Which of the following is correct with respect to Internal Service Funds?

A)Internal service funds use accrual accounting and the economic resource measurement focus

B)Net Assets (fund equity) are to be reported in two categories: assigned and unassigned

C)Internal service funds account for long-term debt but not capital assets

D)All of the above are false statements

57.The categories of Net assets for a proprietary fund are classified within which of the following categories?

A)Net Assets Invested in Capital Assets Net of Related Debt, Restricted Net Assets and Unrestricted Net Assets

B)Spendable Net Assets and Spendable Net Assets

C)Committed Net Assets, Assigned Net Assets and Unassigned Net Assets

D)Restricted Fund balance, Committed Fund balance, Assigned Fund Balance, and Nonspendable Fund Balance

58.Restricted Net Assets for a proprietary fund:

A)Are net resources whose use is restricted by law

B)Are reported net of depreciation

C)Are reported net of accumulated depreciation and any outstanding debt used to acquire the asset

D)Are net resources whose use is restricted by creditors, grantors or other governments.

59.Which of the following is not true regarding proprietary funds?

A)Enterprise funds are used by governments to account for services provided to the general public on a user-charge basis.

B)General obligation bonds that will be paid from enterprise revenues must be reflected in the accounts of enterprise funds.

C)Internal service self-insurance should set fees based on anticipated charges or a long-range plan to break even over time.

D)The operation of internal service funds has no impact on other funds because it is run as a business and provides services that would have been purchased elsewhere by the other funds.