The basis of accounting selected by or imposed on a government can influence which of the following?
A) A decision to contract-out a specific service rather than provide that service itself.
B) The amount of annual contribution to keep pension fully funded.
C) The amount that is available to spend on a donor-specified project or service.
D) All of the above.

Question

The basis of accounting selected by or imposed on a government can influence which of the following? 
A) A decision to contract-out a specific service rather than provide that service itself.
B) The amount of annual contribution to keep pension fully funded.
C) The amount that is available to spend on a donor-specified project or service.
D) All of the above.

Quizplus · Accepted Answer

The basis of accounting affects financial reporting and decision-making in various areas, including contracting out services, funding pensions, and allocating funds for specific projects, as it determines how financial transactions and balances are recognized and reported.

The Basis of Accounting Selected by or Imposed on a Government