Interest Expenditures of a Governmental Fund Should Include

question 58

Multiple Choice

Interest expenditures of a governmental fund should include

• A) Interest paid during the year, only.
• B) Interest paid during the year plus any interest that matured but was not paid during the year.
• C) Interest paid during the year, any interest that matured but was not paid during the year, and accrued interest on short-term debt recorded as a fund liability.
• D) Interest paid during the year, any interest that matured but was not paid during the year, and accrued interest on all general long-term liabilities.

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Definitions:

Consumer Surplus

The variance between the total price consumers intend to pay for a service or good and what they really pay.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.

Willingness to Pay

The maximum amount a consumer is ready to spend on a good or service.

Consumer Surplus

The discrepancy between the amount consumers are prepared to pay for a product or service and the price they actually spend.