Which of the Following Will Increase the Fund Balance of a Government

question 43

Multiple Choice

Which of the following will increase the fund balance of a government at the end of the fiscal year?

• A) The sum of revenues and other financing sources is more than the sum of expenditures and other financing uses.
• B) Expenditures are more than the difference between revenues and the excess of other financing sources over other financing uses.
• C) Revenues are more than the sum of expenditures,other financing sources,and other financing uses.
• D) The sum of fund balance,revenues,and other financing sources is more than the sum of expenditures and other financing uses.

---

Definitions:

Utility Function

(Of an individual) the total utility generated by an individual’s consumption bundle.

Risk-Averse

A characteristic of individuals who prefer certain outcomes over others with equal or potentially higher expected returns but with more uncertainty.

Income

The financial gain earned or received by an individual or entity, usually through work, investments, or other forms of economic activities.

Expected Utility

A concept in economics and finance that represents the total utility that an entity expects to gain under uncertain conditions.