What Is the Effect on the General Fund's Fund Balance

question 119

Multiple Choice

What is the effect on the General Fund's fund balance when capital assets are purchased during a year from General Fund revenues?

• A) Fund balance is increased.
• B) Fund balance is decreased.
• C) There is no effect, since one asset cash is replaced by another capital asset.
• D) None of the above, capital assets must be purchased through a capital projects fund.

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Definitions:

Allergies

An immune system response to a foreign substance that's not typically harmful to the body, such as pollen, food, or pet dander.

Asthma

A chronic respiratory condition characterized by episodes of airway constriction, causing wheezing, shortness of breath, chest tightness, and coughing.

Infant Mortality

The death of a child under the age of one year, measured as the number of deaths per 1,000 live births in a given year or region.

Inches

a unit of length in the Imperial and U.S. customary measurement systems, equivalent to 1/12 of a foot.