A Capital Projects Fund Has Outstanding Encumbrances of $75,000 as of the End

question 41

Multiple Choice

A Capital Projects Fund has outstanding encumbrances of $75,000 as of the end of the fiscal year. Assume that all resources in the Capital Projects Fund are considered to be restricted. Which fund balance classification increases because of these encumbrances?

• A) Restricted fund balance.
• B) Committed fund balance.
• C) Assigned fund balance.
• D) No fund balance category is increased.

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Definitions:

Nightmares

Disturbing dreams that can cause a person to wake up feeling anxious, frightened, or in distress.

Unrealistically Optimistic

The tendency to hold excessively positive expectations for one's self despite evidence to the contrary.

Psychological State

A state of mind or a mental condition at a specific time, influenced by feelings, thoughts, and behavior patterns.

Mania

A mental state characterized by excessive excitement, energy, euphoria, or irritability, often found in bipolar disorder.