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 divided by total beginning net position.
D) Total revenues/total expenses.

Question

Quizplus · Accepted Answer

The measure that determines the extent to which the government's business-type activities are self-supporting is the ratio of business-type activities revenues and expenses. This ratio reveals if the government's business-type activities are generating enough revenue to cover their expenses and determine the extent to which the government is relying on support from taxes or other sources to fund these activities.

Which of the Following Is a Measure of the Extent