The General Fund of the City of Plymouth Purchased a Police

question 69

Multiple Choice

The General Fund of the City of Plymouth purchased a police car in the amount of $28,000. Which of the following would be true?

• A) The government-wide Statement of Activities would report an expense of $28,000.
• B) The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances would report an expenditure of $28,000.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Output

Output is the total amount of goods and services produced by an economy or business over a set period, quantifying productivity and economic activity.

Short Run

A period in economics where at least one input (e.g., capital) is fixed, focusing on immediate effects rather than long-term outcomes.

Resources

A broad term for the assets, materials, and inputs used to produce goods and services, including natural, human, and capital resources.

Variable Cost

A cost that changes in proportion to the level of activity or volume of output in a business.