Salaries and Wages That Have Been Earned by Governmental Employees

question 56

Multiple Choice

Salaries and wages that have been earned by governmental employees that have not yet been paid are recorded in the general fund as:

• A) An expenditure.
• B) An encumbrance.
• C) An appropriation.
• D) An expense.
• E) An investment.

---

Definitions:

Common Stock

Shares representing ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends or stock price appreciation.

Investing Activity

Financial transactions involving the purchase and sale of long-term assets and investments.

Loan Collection

The process of obtaining payment from borrowers on outstanding loans.

Operating Activities

The day-to-day tasks and transactions related to the primary operations of a business, typically reflected in the cash flow statement.