The Accounting Equation Applied by State and Local Governments Is

question 35

Multiple Choice

The accounting equation applied by state and local governments is

• A)Assets + deferred inflows of resources - liabilities = fund balance
• B)Assets + deferred outflows of resources - liabilities - deferred inflows of resources = fund balance
• C)Assets + deferred inflows of resources = liabilities + deferred outflows of resources + fund balance
• D)Assets - deferred outflows of resources - liabilities + deferred inflows of resources = fund balance

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Definitions:

Condensed Balance Sheets

Simplified financial statements presenting only the most essential information about a company's financial position.

Fixed Assets

Long-term tangible assets used in the operation of a business that are not likely to be converted to cash within one year.

Capital Expenditures

Financial resources dedicated by a corporation towards the acquisition, betterment, and maintenance of real assets, like real estate, industrial plants, or machinery.

Collections

The process of obtaining payment of invoices owed by customers.