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:

Constructive Trust

An equitable remedy imposed by a court to address unjust enrichment, requiring one party to hold property for the benefit of another when fairness demands it.

Discretionary Investment Power

The authority granted to manage and make investment decisions on behalf of someone else, typically within specified parameters.

Conservative Debt Securities

Investments in fixed-income securities that are considered low risk, typically issued by government entities or stable corporations.

Prudent Person

A legal standard used to represent the hypothetical individual who exercises average care, skill, and judgment in decision-making, serving as a comparative standard in legal and financial fields.