When a Government's Unassigned Fund Balance/Total Operating Revenues Ratio Is

question 60

Multiple Choice

When a government's Unassigned fund balance/Total operating revenues ratio is high

• A) It is a sign of fiscal strength.
• B) It indicates the government is spending too little.
• C) It indicates the government is taxing too much.
• D) Any of the above may be indicated.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts, clearing the way for the next accounting period.

Periodic Financial Statements

Reports that are issued at regular intervals, such as monthly, quarterly, or annually, summarizing a company's financial position.

Accounting Period

A specific period of time used for financial reporting purposes, typically a quarter or year.