Which of the Following Accounts Is a Budgetary Account of a Governmental

question 15

Multiple Choice

Which of the following accounts is a budgetary account of a governmental fund?

• A) Encumbrances Outstanding.
• B) Appropriations.
• C) Expenditures.
• D) Other Financing Sources.

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Definitions:

Benefit

An advantage or positive outcome gained from something, often used in the context of employment perks or features of a product or service.

Moral Hazard

Moral hazard occurs when one party in a transaction takes on more risk because they know that someone else will bear the cost of those risks.

Transaction

The act of conducting business between two or more parties, often involving the exchange of goods, services, money, or information.

Moral Hazard

A situation in which one party is more likely to take risks because they know that another party bears the consequences or costs of those risks.