Which Statement Best Describes the Uses of Funds for Any

question 32

Multiple Choice

Which statement best describes the uses of funds for any sector:

• A)the combined surpluses of all spending units in the sector
• B)the combined deficits of all deficit spending units in the sector
• C)the income and borrowing of any sector
• D)the current spending and changes in financial instruments held by any sector

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Definitions:

Donated Machinery

Assets received for free by an entity, where the fair market value of the machinery is recorded as both income and an asset on the balance sheet.

Volunteer Hours

The amount of time individuals spend performing unpaid services for nonprofit organizations or community projects.

Restricted Fund Method

An accounting practice where funds specified for certain purposes are kept separate in financial records to ensure their use only for those purposes.

General Fund

A primary operating fund used by governments to finance regular, day-to-day services and activities.