A City Received a Grant of $5,000,000 from a Private

question 63

Multiple Choice

A city received a grant of $5,000,000 from a private agency. The money was to be used to build a new city library. In which fund should the money be recorded for the governmental fund financial statements?

• A) The General Fund.
• B) An Expendable Trust Fund.
• C) A Capital Projects Fund.
• D) An Agency Fund.
• E) A Permanent Fund.

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Definitions:

Diagram

A graphical representation used to visualize data, processes, systems, or physical objects, aiding in understanding, analysis, and communication.

Output

The total amount of goods or services produced by a firm, industry, or economy over a certain period of time.

Efficiency Loss

A reduction in economic efficiency resulting from not allocating resources optimally, often seen in the presence of market distortions like taxes or subsidies.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable.