Which of the Following Ratios Would Be Most Helpful in Assessing

question 54

Multiple Choice

Which of the following ratios would be most helpful in assessing the operating position of a government entity?

• A) Net tax-supported long-term debt/population.
• B) Own source revenues/total revenues.
• C) Debt service expenditures/total expenditures.
• D) General Fund balance/General Fund operating revenues.

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Definitions:

Fees Earned

Income received from providing services, a form of revenue for professionals and businesses engaged in service activities.

Interest Income

Revenue earned from the investment of funds in interest-bearing accounts or securities, such as bonds or savings accounts.

Rent Expense

An expense account recording the cost incurred by a business to rent facilities or equipment.

Adjusting Journal Entry

A journal entry made at the end of an accounting period to record any unrecognized income or expenses for that period, ensuring the accounts reflect true and fair values.