The cash receipts journal will be used for
a. only cash received from customers on account
b. all cash received for any purpose
c. cash received from customers on account and cash sales
d. only cash received from cash sales
Question 2
Why are separate operating statements prepared for governmental funds and proprietary funds in the fund-level financial statements?
a. because a single operating statement would require too many columns for the average reader to understand readily
b. because governmental funds use the full accrual basis of accounting in the fund financial statements, whereas proprietary funds use the modified accrual basis of accounting
c. because governmental funds have a different measurement focus and basis of accounting than proprietary funds in the fund-level financial statements
d. because governmental fund operating statements need to be read together with the budget and actual schedules, whereas proprietary fund operating statements do not
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