For Each of the Following Scenarios, Indicate How They Would

question 16

Essay

For each of the following scenarios, indicate how they would be classified for fund balance reporting purposes using the classification list.
A. Nonspendable
B. Restricted
C. Committed
D. Assigned
E. Unassigned
________ 1. Bond proceeds of $15,000,000 that must be used for construction of a fire substation remain unspent at the end of the fiscal year.
________ 2. Prepaid rent of $6,000 remains at the end of the fiscal year.
________ 3. The city council adopted a plan to set aside 2% of revenues over the next three years to help build cash reserves. At the end of the fiscal year 2% of the revenues were set aside.
________ 4. The state transportation department provided $1,000,000 in state funds to be used for street widening. At the end of the fiscal year $750,000 remained unspent.
________ 5. The county received a $3,000,000 endowment during the year.

---

Definitions:

Consumer Adoption Process

The sequence of stages a consumer goes through in embracing a new product or service, from awareness to loyalty.

Trial

A test period during which a product or service is used to assess its functionality or effectiveness before making a full commitment.

Product Line Extensions

Adding new products to an existing product line in order to compete more broadly in the industry.

Revamped Product

A product that has been significantly modified or updated with new features, design, or packaging to improve its appeal or functionality.