Fund Balance That Has an Internal Constraint Imposed by Formal

question 40

Multiple Choice

Fund balance that has an internal constraint imposed by formal action of the government's highest decision making authority is classified as:

• A)restricted.
• B)committed.
• C)nonspendable.
• D)assigned.

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Definitions:

Incremental Value

The additional value generated by undertaking a new project or decision, calculated as the difference between the value with and without the project.

Outstanding Stock

Outstanding stock is the total number of shares of a corporation that have been issued and are held by shareholders, including restricted shares owned by the company's officers and insiders.

Cash Deal

A transaction where payment is made in full using cash or cash equivalents rather than financing or trading.

Incremental Value

The additional or extra value generated by undertaking a certain action or investment, compared to not doing so.