Permanent Accounts Would Not Include

question 107

Multiple Choice

Permanent accounts would not include:

• A)Accounts Payable.
• B)Office Supplies.
• C)Utilities Expense.
• D)Common Stock.

Comprehend the classification and reporting of fund balances in governmental funds.

Recognize the different fiduciary funds and their usage in governmental accounting.

Understand the implications of specific decisions (e.g., city council decisions) on fund balance designations.

Identify the entities responsible for establishing accounting principles for governmental entities and their origins.

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Definitions:

Labor Market

The marketplace in which employers find workers and workers find jobs, governed by the supply and demand for labor.

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.

Grease the Wheels

An expression used to describe actions that facilitate or ease the progress of a process, activity, or operation, often implying making things run more smoothly and efficiently.

Political Business Cycle Theory

A theory suggesting that elected officials may manipulate economic policies to produce favorable economic conditions ahead of elections to increase their chances of reelection.