To Record the Sale of a Fixed Asset Carried in the General

question 34

Multiple Choice

To record the sale of a fixed asset carried in the General Fixed Assets Account Group, a city could debit which one of the following accounts in the GFAAG?

• A)Cash
• B)Expenditures
• C)Accounts Receivable
• D)Investment in General Fixed Assets - General Fund

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Definitions:

Multiplier

A factor by which an initial change in spending will alter total economic output by more than the initial monetary amount.

Marginal Propensity

A measure of how much an individual's consumption changes when their income changes.

Spending Multiplier

A concept in economics that refers to the ratio of a change in output to the initial change in spending that brought it about, indicating the ripple effect of spending through the economy.

Price Level

An index of the average prices of goods and services in an economy over time, indicating inflation or deflation trends.