Which of the Following Best Describes an Assignment of Fund

question 4

Multiple Choice

Which of the following best describes an assignment of fund balance?

• A)it is a government's intent to spend resources for specific purposes
• B)it is another term for a budgetary fund balance reserved for encumbrances
• C)it is constrained as a result of a formal action by a government's legislative body
• D)it is a legal segregation of fund balance,and must be used for the purpose assigned

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Definitions:

Financial Statement

A written report that quantitatively describes the financial health of a company, including balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Designations for accounts or job positions that indicate if they are expected to last indefinitely or have a fixed duration, respectively.

Gross Method

An accounting method for recording purchases at the invoice amount without deducting any discounts offered.