Which of the Following Events Will Result in a Journal

question 68

Multiple Choice

Which of the following events will result in a journal entry being recorded in both the budgetary and proprietary accounts of a federal agency?

• A) OMB establishes the amount of the total appropriation that the agency may expend in the first quarter.
• B) Goods or services are received and approved for payment.
• C) Both (a) and (b)
• D) Neither (a) nor (b)

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Definitions:

Well-Organized Markets

Financial markets characterized by high levels of efficiency, transparency, liquidity, and regulation, facilitating fair and orderly trading and pricing of securities.

Efficient Markets

A hypothesis suggesting that financial markets are "informationally efficient," meaning prices of securities reflect all available information at any moment.

Expected Risk Premium

The extra return investors require to hold a risky asset over a risk-free asset, reflecting the additional risk.