Due to an Error,the General Fund of Pueblo Did Not

question 43

Multiple Choice

Due to an error,the general fund of Pueblo did not record an encumbrance for police equipment which had been ordered but not received on June 30,20X9,the end of its fiscal year.Pueblo's outstanding encumbrances at year-end are nonlapsing.What was the effect of this error on the balance sheet of Pueblo's general fund?

• A) Assets are overstated.
• B) Liabilities are understated.
• C) Total fund balance is overstated.
• D) Unassigned fund balance is overstated.

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Definitions:

Managerial Disaster

A significantly adverse event resulting from poor management decisions, which can lead to financial loss, reputational damage, or operational dysfunction.

Environmental Disaster

A significant event caused by human activity or natural processes leading to severe negative impacts on the environment.

Technological Disaster

An event caused by a malfunction, failure, or misuse of technology, leading to significant harm to people, property, or the environment.

Breeder Reactor

A type of nuclear reactor that generates more fissile material than it consumes, using a specific fuel cycle to convert fertile materials into fissile fuels, thus extending the fuel supply for nuclear energy.