According to the Latest GASB Exposure Draft,which of the Following

question 47

Multiple Choice

According to the latest GASB exposure draft,which of the following is the only governmental fund type that may report an unassigned fund balance?

• A) General fund
• B) Special revenue fund
• C) Capital projects fund
• D) Permanent fund

Understand the process and calculations involved in creating production budgets.

Understand the process and calculations involved in creating direct materials budgets.

Calculate cash payments for materials based on budgeted purchases and payment terms.

Understand and apply the concept of cash collections and receipts from sales, including sales on credit.

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Definitions:

Merchandising Business

A type of business that purchases goods wholesale and resells them retail; primarily involved in selling merchandise to consumers.

Revenue Account

A revenue account is an account that records the income earned from the sale of goods or the provision of services before any expenses are deducted.

Sales to Total Assets Ratio

A financial ratio that measures a company's ability to use its assets to generate sales, calculated by dividing sales by total assets.

Cost of Merchandise Sold

The total cost incurred to purchase or produce the goods sold by a company during a specified period, directly affecting the gross profit.