Which Best Defines the Situation of Local Governments in the American

question 58

Multiple Choice

Which best defines the situation of local governments in the American federal system?

• A) They are created by the national government.
• B) They are created by state governments.
• C) They are formed by popular petition.
• D) They are created by the national and state governments working together.
• E) They do not exist in a legal sense and only play a ceremonial role.

---

Definitions:

Unearned Revenue

Money received by a company from a customer for products or services to be delivered or performed in the future.

Prepaid Rent

Prepaid rent refers to payments made in advance for rent, recorded as an asset on the balance sheet until it is consumed or the rental period elapses.

Notes Payable

Financial obligations or loans evidenced by promissory notes that a company or individual owes and is required to pay in the future.

Salaries Expense

Salaries expense represents the total amount paid to employees for services rendered during a specific period, including wages, bonuses, and other compensation.