Which Line Item Does Not Properly Belong in the Balance

question 30

Multiple Choice

Which line item does not properly belong in the balance sheet of a governmental fund?

• A)short-term investments
• B)fixed assets
• C)cash
• D)accounts (or vouchers)payable

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Definitions:

Long-Run Profits

Long-run profits are the earnings a firm expects to achieve over a period during which all inputs, including capital, can be fully adjusted.

Elastic

Describes a situation where the demand or supply for a good or service significantly changes in response to changes in price.

Pure Competition

A market structure characterized by a large number of buyers and sellers, uniform products, and free entry and exit, leading to price taking behaviour.

Excess Capacity

A situation where a firm is producing at a level less than its potential maximum output, indicating underutilization of resources.