The Types of Funds That May Be Used in Governmental

question 4

True/False

The types of funds that may be used in governmental accounting are classified into the three categories of governmental, proprietary, and fiduciary.

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Definitions:

Consideration

A concept in contract law that involves something of value exchanged between parties as part of an agreement.

Subrogation

The legal right held by insurers to pursue a third party that caused an insurance loss to the insured.

Secured

Relating to a loan or obligation that is backed by collateral, ensuring the lender has recourse in case of default by the borrower.

Obligation

A legal or moral duty to do or not to do something, often resulting from a contract or promise.