Which of the Following Budgetary Accounts Is Typically Used by a Debt

question 76

Multiple Choice

Which of the following budgetary accounts is typically used by a debt service fund?

• A) Encumbrances.
• B) Appropriations.
• C) Estimated Uncollectible Accounts.
• D) Encumbrances Outstanding.

---

Definitions:

Consolidation

The process of combining the financial statements of a parent company with those of its subsidiaries, to present accounts as if the group were a single entity.

Adjustments

Changes made to preliminary financial statement figures to correct errors, account for prepayments, accruals, or to reflect a more accurate representation of the financial position.

Acquisition Method

An accounting technique used in consolidating the financial statements of a group in which a new acquisition is included.

Business Combinations

Transactions in which one entity gains control over one or more other businesses, including mergers, purchases of net assets, and consolidations.