The Board of Commissioners Took Formal Action to Dedicate Resources

question 1

Multiple Choice

The Board of Commissioners took formal action to dedicate resources for a particular project in the Capital Projects Fund. Those resources cannot be redirected for another use unless an equivalent formal action is taken. As of the end of the fiscal year, a portion of these resources remain in fund balance. The proper fund balance classification for these resources would be

• A) Nonspendable.
• B) Restricted.
• C) Committed.
• D) Assigned.

---

Definitions:

Federal Income Tax

A tax levied by the U.S. government on the annual earnings of individuals, corporations, trusts, and other legal entities.

FICA Taxes

Federal Insurance Contributions Act taxes, which fund Social Security and Medicare, required deductions from employees' paychecks and matched by employers.

FICA Taxes

Federal taxes in the United States that fund Social Security and Medicare, required to be withheld from an employee's paycheck.

Tax Expense

The amount of taxation a company is required to pay to various tax authorities, based on its earnings.