Excel

Answer the following True or False $(10$ Mark$)$

Governments and not$-$for$-$profit entities may never engage in business$-$type activities.

a$)$ TRUE

b$)$ FULSE

A government's budget may be backed by the force of law.

a$)$ TRUE

b$)$ FULSE

Lenders use the financial statements of governments and not$-$for$-$profit entities just as they would those of businesses, that is$,$ to help assess the borrower's creditworthiness.

a$)$ TRUE

b$)$ FULSE

If an entity adopts a full accrual basis of accounting, its measurement focus will automatically on cash.

a$)$ TRUE

b$)$ FULSE

A government may report some of its funds on a full accrual basis.

a$)$ TRUE

b$)$ FULSE

The main objective of a typical governmental or not$-$for$-$profit entity is to earn a profit.

a$)$ TRUE

b$)$ FULSE

The basis of accounting determines when transactions and events are recognized.

a$)$ TRUE

b$)$ FULSE

Capital budgets focus on plans for the acquisition and construction of fixed assets.

a$)$ TRUE

b$)$ FULSE

Not$-$for$-$profit budgets can rely on levies in addition to fund$-$raising and donations for revenues.

a$)$ TRUE

b$)$ FULSE

Capital budgets concentrate on long$-$lived assets

a$)$ TRUE

b$)$ FULSE