Correctly Match Each Event with the Appropriate Expenditure Classification

question 56

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.
-Purchase of a vehicle that will be used in the Library (which is accounted for using a Special Revenue Fund) .

• 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)

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Definitions:

Goods and Services

Refers to the physical products and intangible benefits that fulfill the needs or wants of consumers.

Surplus

The condition when supply exceeds demand, leading to excess goods or services being available.

White Water Rafting

A recreational outdoor activity which uses an inflatable raft to navigate a river or other body of water with varying degrees of rough water.

Unit Cost

Unit cost is the total expenditure incurred to produce, store, and sell one unit of a product or service, including both fixed and variable costs.