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

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Definitions:

Limits To Arbitrage

Constraints or factors that prevent investors from correcting a mispriced asset, often due to costs, risks, or regulatory barriers.

Siamese Twin Companies

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Closed-end Funds

Type of investment fund with a fixed number of shares that trade on a stock exchange, unlike open-end funds that continuously issue new shares or redeem existing shares.

Behavioral Finance

Models of financial markets that emphasize implications of psychological factors affecting investor behavior.