Use the Following Information to Answer Questions

question 5

Multiple Choice

Use the following information to answer Questions
In the current year, the City of Katerah earned $24,000 on the principal of a private-purpose trust fund but disbursed only $20,000.
-During the current year the private-purpose trust fund will recognize, related to the cash outflow:

• A)$20,000 transfer out.
• B)$20,000 expenses.
• C)$24,000 deduction from net assets.
• D)$20,000 deduction from net assets.

---

Definitions:

Increasing Returns

A situation in economics where an increase in the scale of production leads to a more than proportionate increase in output, often due to efficiencies gained.

Trade Pattern

The general flow of import and export transactions between countries or regions.

Exports

Goods or services sent from one country to be sold or used in another country.

Opportunity Cost

The abandonment of gains that might have come from different options when a particular choice is prioritized.