Which of the Following Is an Appropriate Use of a Fund

question 42

Multiple Choice

Which of the following is an appropriate use of a fund balance restriction?

• A) To report the amount of capital assets acquired during the year.
• B) To indicate that the finance director is setting aside a substantial amount of resources for a special project.
• C) To report the amount of long-term debt that will mature in the next 12 months.
• D) To report amounts that can only be used for specific purposes due to debt covenant constraints.

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Definitions:

Leader Effectiveness

The degree to which a leader successfully achieves desired outcomes, fulfills organizational objectives, and meets the needs of followers.

Referent Power

A form of influence that stems from being admired or respected, which leads others to identify with and emulate the individuals or groups that possess it.

Motivating Subordinates

This involves inspiring and encouraging team members to achieve goals and enhance their performance.

Expert Power

A form of influence derived from possessing knowledge, skills, or expertise that others depend on or value highly.