Correctly Match Each Event with the Appropriate Expenditure Classification

question 28

Multiple Choice

Correctly match each event with the appropriate expenditure classification. Unless specifically stated otherwise, assume all amounts have been incurred. If the event is not an expenditure, state how the event would be reported in the current year General Fund financial statements. Each classification of expenditure may be used once, more than once, or not at all.
-Borrowing money with a short-term note.

• A)Expenditures - Operating
• B)Expenditures - Intergovernmental
• C)Expenditures - Capital Outlay
• D)Expenditures - Debt Service Principal
• E)Expenditures - Debt Service Interest
• F)Not a General Fund expenditure
• G)Event reduces expenditure (also identify which of above expenditures would be reduced)

Recognize the importance of market demand and how individual demands are aggregated.

Understand the concept of substitution effect and its impact on demand.

Comprehend how changes in prices influence consumer behavior through the substitution and income effects.

Recognize how the principle of diminishing marginal utility affects consumer choices.

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Definitions:

Margin of Safety

The difference between actual or budgeted sales and the break-even point, indicating how much sales can decline before the company incurs a loss.

Electronics Boutique

A former chain of retail stores that specialized in video games and electronics, now known as GameStop.

Digital Camera

A camera that captures photographs in digital format, allowing for immediate viewing, deletion, or storage.

Dollar Sales

The total value of goods or services sold, measured in dollars, within a specific period of time.