Q11:

Accrual basis of accounting is not used in governmental entities because they use modified accrual basis of accounting.

a.

FALSE

b.

TRUE

Q12:

The term "appropriation" refers to except

a.

The resources that are used to carry out the activities of the governmental unit

b.

The specified amount of money allocated by management for each particular purpose

c.

Appropriations represent the authority to spend money in accordance with the budget

d.

The actual outlay of resources or incurrence of debt to purchase goods