Which of the following is a measure of the extent to which the government's business-type activities are self-supporting?
A) Unrestricted net position/total revenues.
B) Business-type activities revenues/business-type activities expenses.
C) Total net position (governmental activities and business-type activities) less total net position at the beginning of the year.
D) Total revenues/total expenses.

Question

Quizplus · Accepted Answer

Business-type activities revenues divided by business-type activities expenses is a measure of the extent to which the government's business-type activities are self-supporting. It measures the ability of these activities to generate enough revenues to cover their expenses without requiring additional support from other government funds. The other measures listed are not directly related to the self-supporting status of business-type activities.

Which of the Following Is a Measure of the Extent