Which of the Following Will Require a Credit to Fund

question 58

Multiple Choice

Which of the following will require a credit to Fund Balance-Unassigned of a governmental fund when operating statement accounts are closed at the end of the year, assuming there are no other financing sources or uses?

• A) Revenues are less than expenditures.
• B) Revenues are more than expenditures.
• C) Revenues are more than expenditures and encumbrances.
• D) Revenues are less than expenditures and encumbrances.

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Definitions:

Burnout Brand

A term referring to a brand that has lost its appeal or distinctiveness in the market, often due to overexposure, lack of innovation, or failure to maintain consumer interest.

Incremental Cash Flows

The additional operating cash flow that an organization receives from taking on a new project, distinct from the organization's existing cash flow.

Future Net Income

An estimation of a company's future earnings after all expenses and taxes have been subtracted from revenue.

Project

A project is a temporary endeavor designed to produce a unique product, service, or result with a defined beginning and end, often constrained by funding or deliverables.