Which of the Following Results in a Decrease in Fund

question 76

Multiple Choice

Which of the following results in a decrease in fund balance on a governmental fund's Balance Sheet?

• A) Expenditures
• B) Transfers Received
• C) Encumbrance
• D) Both A and B

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Definitions:

Differential Basis

A method of calculating or analyzing the difference in costs or revenues between two alternative actions.

Sunk Cost

A cost that cannot be changed by any present or future decision.

Book Value

The difference between the cost of a depreciable asset and its related accumulated depreciation.

Opportunity Cost

The potential benefit that may be obtained from following an alternative course of action.