Which of the Following Statements Is False

question 51

Multiple Choice

Which of the following statements is false?

• A) Resources representing supplies and prepaid items are classified in governmental funds as Nonspendable Fund balance.
• B) Capital Projects, debt service and permanent funds do not typically record budgets.
• C) Debt service and permanent funds do not record encumbrances.
• D) Principal of permanent funds is classified as Committed Fund Balance

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Definitions:

Competitive Market

A market structure characterized by a large number of firms competing against each other, leading to efficient prices and products.

Resources

Assets, materials, and inputs needed to produce goods and services.

Overallocated

A situation where resources are disproportionately distributed or excessively committed to a particular project or area, potentially leading to inefficiencies.

Production

Production is the process of creating goods or services through the combination of labor, materials, and technology to meet consumer demand.