Which of the Following Will Increase the Fund Balance of a Government

question 70

Multiple Choice

Which of the following will increase the fund balance of a government at the end of the fiscal year?

• A) The sum of revenues and other financing sources is more than the sum of expenditures and other financing uses.
• B) Expenditures are more than the difference between revenues and the excess of other financing sources over other financing uses.
• C) Revenues are less than the sum of expenditures, other financing sources, and other financing uses.
• D) The sum of fund balance, revenues, and other financing sources is more than the sum of expenditures and other financing uses.

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Definitions:

Celler-Kefauver Act

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Conglomerate Mergers

Mergers between firms that operate in unrelated business activities, aiming to diversify product offerings and risks.

Herfindahl-Hirschman Index

An economic indicator that measures the level of concentration and competition within an industry.

Economies of Scale

Refers to the cost advantage experienced by firms when they increase their level of production. The advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced.