Use the Following to Answer the Next Two Questions

question 8

Multiple Choice

Use the following to answer the next two questions:
The City of Park Ridge reported appropriations in the amount of $17,000,000 for its General Fund for the fiscal year ended December 31, 2014. During that year, expenditures amounted to $16,200,000 (related to current year purchase orders) and $900,000 (related to prior year purchase orders) . In addition, $700,000 in encumbrances had been issued this year, but not filled. Park Ridge follows the budgetary procedure where encumbrances do not lapse.
-The amount that Park Ridge would report for expenditures (and encumbrances,if applicable) in its 2014 General Fund Statement of Revenues,Expenditures,and Changes in Fund Balances (GAAP Basis) would be:

• A) $17,100,000.
• B) $16,200,000.
• C) $17,700,000.
• D) $16,900,000.

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Definitions:

Eminent Domain

The right of a government to expropriate private property for public use, with compensation to the owner.

Private Property

Land or belongings owned by an individual or group, legally protected by laws of the jurisdiction in which it is located.

Contracting Power

The authority granted to entities, often within the government, to enter into legal agreements or contracts, often for procurement or services.

Government Agencies

Organizations at the federal, state, or local level that implement and manage specific government policies and programs.