Unassigned Fund Balance $\textbf{ cannot }$

question 12

Multiple Choice

Unassigned fund balance $\textbf{ cannot }$ be described as

• A) The residual fund balance that remains after accounting for nonspendable fund balance, restricted fund balance, committed fund balance, and assigned fund balance.
• B) A fund balance category that is used to report positive and negative balances in any governmental fund.
• C) The amount of governmental fund net assets with no constraints on their use.
• D) A fund balance category that is used to report positive and negative balances in the General Fund, but only negative balances in other governmental funds.

Recognize the difference between a company’s operating cycle and fiscal year.

Understand the classification and characteristics of current assets.

Comprehend the process and significance of closing entries and how they relate to the owner's capital.

Grasp the concept and duration of an operating cycle in a business.

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Definitions:

Insurance Expense

The cost associated with purchasing insurance policies to protect against risks, often reported as an operating expense.

Income Statement Accounts

Income statement accounts include all the revenue and expense accounts that determine a company's net income or net loss for a specific period.

Balance Sheet Accounts

Accounts that appear on the balance sheet, such as assets, liabilities, and shareholders' equity, reflecting the financial position at a specific point in time.

Adjusting Entries

At the close of an accounting period, entries in accounting records to apportion income and outlays to the actual time they happened.