Which of the Following Will Require a Debit to Fund

question 22

Multiple Choice

Which of the following will require a debit 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:

Invested Assets

Refers to resources allocated by individuals or entities into various types of investment vehicles aiming for future returns.

Service Department

An organizational unit that provides support and services to other units within the organization, rather than producing goods or services for external customers.

Internal Service Departments

Departments within an organization that provide essential services to other departments rather than external customers, such as IT support or human resources.

Inventory Control

The processes and procedures used to manage the ordering, storage, and use of components that a company will use in the production process or the management of stock available for sale.