Multiple Choice
Which of the following is a valid reason for governments to engage in business-type activities?
A) The government does not want control over the activity.
B) The activity competes with general government activities.
C) The government does not want to subsidize the activity.
D) The government can provide the services more cheaply or efficiently than can a private firm.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Carlton City has operated a City Utility
Q2: In a statement of net position, the
Q4: Cougar City issued $2 million in general
Q5: On the fund financial statements, internal service
Q6: How should a government usually report the
Q7: Governments must account for an activity in
Q8: Which of the following entities is required
Q9: The revenues of an internal service fund
Q10: Governments are required to prepare a statement
Q11: The government should not recognize a liability