WGU Practice Questions C252 Chapter 1 Questions & Answers 100% Correct

2. Which of the following characteristics best distinguishes a government entity from a business entity? a. Governments operate in a very small section of the economy while businesses operate globally. b. Cost analysis and other control and evaluation techniques are essential to ensure that resources are used economically and efficiently. c. Those contributing resources to the entity do not necessarily receive a direct or proportionate share the services. d. Businesses must acquire and convert scarce resources while governments can demand whatever they need. - ANSWER-c. Those contributing resources to the entity do not necessarily receive a direct or proportionate share the services. 3. Which source of financial resources is unique to governments? a. Borrowings. b. Gifts and grants. c. Charges for services provided. d. Taxation. - ANSWER-d. Taxation. 4. Which of the following is not a primary financial reporting objective of state and local government reporting? a. Provide information necessary to assess the level of local government services and its ability to continue to finance its activities and meet its obligations. b. Provide information necessary for investment and credit decisions. c. Provide a means of demonstrating the state and local government's accountability that enables users to assess that accountability. d. Provide information necessary to evaluate the state and local government's operating results for the period. - ANSWER-b. Provide information necessary for investment and credit decisions.