A Governmental Fund Has Total Liabilities in Excess of Its

question 53

Multiple Choice

A governmental fund has total liabilities in excess of its total assets at the end of the fiscal year.It has no deferred resource inflows or outflows.Which of the following statements is always true?

• A)fund balance is negative
• B)cash is less than short-term receivables
• C)payables exceed receivables
• D)payables exceed cash

---

Definitions:

Bureaucracy

A system of government in which most of the important decisions are made by state officials rather than by elected representatives.

Trent Reznor

An American musician, songwriter, and producer, best known as the lead vocalist, primary musician, and songwriter of the industrial rock project Nine Inch Nails.

Psychoanalytic Theory

A theory of personality organization and the dynamics of personality development that guides psychoanalysis, introduced by Sigmund Freud.

Moral Component

The aspect of an action, decision, or situation that relates to principles of right and wrong behavior.