1. Under the modified accrual basis of accounting, a police car that is purchased would bea.capitalized and depreciatedc.capitalized but not depreciatedb.charged completely to expendituresd.recorded as a nonexchange transaction2. Which of the following is NOT true? The GASB sets standards for governments and governmental not-for-profit organizations if they have one or more of the following characteristicsa.popular election of officersc.a direct relationship between resources received and goods and services providedb.power to directly issue tax-exempt debtd.power to enact and enforce a tax levy
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