Expenditures Are Generally Recorded and Fund Liabilities Are Recognized

question 82

Multiple Choice

Expenditures are generally recorded and fund liabilities are recognized

• A) When goods and services are received, but only if resources are available in the fund.
• B) When goods and services are received, regardless of whether or not resources are available in the fund.
• C) When purchase orders are issued, regardless of whether or not resources are available in the fund.
• D) When invoices are paid.

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Definitions:

Spot Market

An open financial market where commodities or financial instruments are exchanged and delivered right away.

Discount

To calculate the present value of some future amount.

Future

A standardized legal contract to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Forward Market

A marketplace for financial contracts that are agreed upon now but settled at a future date.