Which Statement Is Not Correct

question 1

Multiple Choice

Which statement is not correct?

• A) Governmental funds account for expenditures of financial resources rather than matching revenues and expenses.
• B) The Encumbrances Outstanding account should be reversed and closed at the end of a fiscal year.
• C) Revenues from licenses and permit fees are recognized when received in cash if using the modified accrual basis of accounting for governmental funds.
• D) A fund is an independent accounting entity composed of cash and other financial resources, segregated for the purpose of carrying on specific activities and objectives.
• E) Commitments for purchase orders are recorded as expenses.

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Definitions:

Europe

A continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere, known for its rich history, diverse cultures, and influential role in world affairs.

Byzantine Empire

An empire (330–1453) originating from the eastern part of the Roman Empire, centered around its capital Constantinople, known for its rich culture and as a bulwark of Orthodox Christianity.

Constantinople

The capital city of the Byzantine Empire, known as a strategic and economic hub, later conquered by the Ottomans and renamed Istanbul.

Ottoman Turks

Refers to the people from the Ottoman Empire, a vast and powerful empire that spanned parts of Europe, Africa, and Asia from the late 13th century until its dissolution after World War I.