Which of the Following Statements Is True

question 26

Multiple Choice

Which of the following statements is true?

• A) Fund balances of debt service funds are classified as Restricted and Unrestricted.
• B) The fund balance of permanent funds should be classified as Nonspendable, Spendable and Committed.
• C) The principal of permanent funds are classified as Nonspendable Fund Balance.
• D) Any governmental fund may have an Unassigned Fund Balance

---

Definitions:

Retail Gift Stores

Commercial establishments focusing on selling various gift items including souvenirs, handmade crafts, and other unique products to customers.

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or investment, based on a 360-day year.

Ordinary Simple Interest

A method for calculating the interest charge on a loan or investment based on the original principal, rate, and length of time, without compounding.

360-Day Year

A financial calculation assumption where the year is considered to have 360 days for simplifying interest related calculations.