A measure of the extent to which the government's business-type activities depend on subsidies from taxpayer or other general revenues rather than having the full cost of the activities' operations funded by charges to the users of the service is
A)Unrestricted net assets/total revenues.
B)Business-type activities revenues/business-type activities expenses.
C)Total net assets (governmental activities and business-type activities)less total net assets at the beginning of the year.
D)Total revenues/total expenses.

Question

Quizplus · Accepted Answer

Business-type activities revenues/business-type activities expenses measures whether the government's business-type activities are fully funding their own costs through user charges or if they are relying on subsidies from taxpayer or other general revenues. A ratio less than 1 indicates that the activities are not fully covering their costs and are relying on subsidies.

A Measure of the Extent to Which the Government's Business-Type