Salaries and Wages That Have Been Earned by Governmental Employees

question 56

Multiple Choice

Salaries and wages that have been earned by governmental employees that have not yet been paid are recorded in the general fund as:

• A) An expenditure.
• B) An encumbrance.
• C) An appropriation.
• D) An expense.
• E) An investment.

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Definitions:

Terms of Sale

The conditions and stipulations under which a sale is conducted, including payment, delivery, and warranty details.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Natural Monopoly

A market condition where a single firm can supply a good or service to an entire market more efficiently than if there were multiple suppliers, due to high fixed or startup costs.

Investor Owned

Pertains to a business or entity that is privately owned by investors who seek to earn profits from the operation.