Which of the Following Statements Is True About Fund Balance

question 33

Multiple Choice

Which of the following statements is true about Fund Balance classifications for the governmental funds?

• A) A restricted fund balance is for monies the governing board has appropriated.
• B) An assigned fund balance has been designated for a specific purpose and is restricted to use for only that purpose.
• C) An unassigned fund balance has no restriction for use of the money and is normally applicable to the general fund.
• D) A committed fund balance has been designated by an outside party for a particular use.
• E) A nonspendable fund balance is designated only for the balance of permanent funds.

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Definitions:

Assimilation

The process by which individuals or groups of differing cultural background are absorbed into the dominant culture of a society.

Territoriality

The instinctual or learned concept of establishing and defending an area against others.

Ownership Rights

Legal rights that grant individuals or entities the authority to possess, use, and dispose of property or resources.

Defense Mechanism

Psychological strategies employed unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.