Given a specific set of data, the basis of accounting selected by or imposed on a governmental entity will least affect which of the following?
A)Determining whether or not the governmental entity has a balanced budget.
B)Determining whether or not the governmental entity has the ability to issue debt.
C)Determining whether or not certain economic events occurred.
D)Determining the annual payments to a government-sponsored pension plan.

Question

Quizplus · Accepted Answer

The basis of accounting affects how transactions and events are recognized and reported, but it does not affect whether or not certain economic events actually occurred.

Given a Specific Set of Data, the Basis of Accounting