For Each of the Following Expenditure Items, Indicate Its Correct

question 24

Essay

For each of the following expenditure items, indicate its correct classification scheme suggested by GASB standards.
A. Function
B. Program
C. Organization unit
D. Activity
E. Character
F. Object
________ 1. Streetlight repair
________ 2. City clerk
________ 3. Salaries and wages
________ 4. Transportation
________ 5. Current operating expenditures

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Definitions:

Capital Goods

Long-term physical assets used in the production of goods or services, such as machinery and buildings.

Current Consumption

The total amount of goods and services consumed at the present time, as opposed to savings for future consumption.

Time Preference

The inclination of individuals to prefer goods and services sooner rather than later.

Rational Expectations

The hypothesis that individuals form predictions of the future based on available information and act on those predictions rationally.