Which of the Following Is Not a Characteristic of the General

question 46

Multiple Choice

Which of the following is not a characteristic of the General Fund?

• A) Is used to account for all financial resources that are not required to be accounted for in another fund.
• B) Is used by all governments that report governmental fund activities.
• C) May require combining statement at year-end when a government has more than one General Fund.
• D) Is established at inception of a government and exists throughout its life.

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Definitions:

Two-factor Model

A Two-factor Model in finance is an asset pricing model that uses two variables to calculate the value of an asset or the expected return.

Commodity Prices

The market prices for raw materials or primary agricultural products.

Market Risk

The risk of losses in investments due to factors that affect the entire market or economy.

Arbitrage Opportunity

A situation in which it is possible to simultaneously buy and sell an asset or commodities in different markets to profit from price differences.