Which of the Following Statements Is True About Fund Balance

question 16

Multiple Choice

Which of the following statements is true about Fund Balance classifications for the governmental funds?

• A)A restriced fund balance is for monies the governing board has appropriated.
• B)An assigned fund balance has been designated for a specific purpose and is restricted to use for only that purpose.
• C)An unassigned fund balance has no restriction for use of the money and is only applicable to the General Fund.
• D)A committed fund balance has been designated by an outside party for a particular use.
• E)A nonspendable fund balance is designated only for Permanent Fund balances.

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Definitions:

Convergence Theory

The hypothesis that poorer economies will tend to grow at faster rates than wealthier economies, leading to a convergence of income levels over time.

Developing Countries

Nations with lower levels of industrialization, lower standards of living, and lower Human Development Index ratings compared to developed countries.

Reliable Source

A credible or trustworthy origin of information or data, often used in research or decision-making.

Source of Electricity

Any process or system that produces electric power, including fossil fuels, nuclear power, and renewable sources like solar, wind, and hydroelectric power.