Which of the following statements is (are) correct about the funds used by governmental entities?
A) I only
B) II only
C) I and II
D) Neither I nor II

Question

Which of the following statements is (are) correct about the funds used by governmental entities? 
A) I only 
B) II only 
C) I and II 
D) Neither I nor II

Quizplus · Accepted Answer

I. The funds used by governmental entities are public funds and not privately owned by public officials.
This statement is correct as the funds used by governmental entities are collected from taxes, fees, and other public revenue sources. These funds are not owned by public officials but are held in trust for the public and used for public purposes.

II. Governmental entities are required to follow accounting principles established by Generally Accepted Accounting Principles (GAAP).
This statement is also correct as governmental entities are required to follow GAAP in order to ensure transparency and accountability in their financial reporting. This includes providing full and fair disclosure of financial information and ensuring that financial statements are accurate and reliable.

Which of the Following Statements Is (Are) Correct About the Funds