Expenditures Are Generally Recorded and Fund Liabilities Are Recognized

question 69

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

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Definitions:

Risky Portfolio

A collection of investments that hold a significant level of risk, aiming for potentially higher returns.

Expected Rate of Return

The anticipated return on an investment, based on the probability of various outcomes, including both risky and risk-free returns.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, often used in finance to gauge investment risk.

Risky Asset

An investment that holds a significant chance of losing some or all of its value, offering the potential for higher returns to compensate for higher risk.