Which of the Following Is not Correct with Respect to the General

question 59

Multiple Choice

Which of the following is not correct with respect to the General Fund?

• A) There can only be one general fund.
• B) Only the general fund has a positive unassigned fund balance.
• C) The general fund may be combined with funds that are insignificant in amount for presentation purposes.
• D) The general fund has an indefinite life

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Definitions:

Treasury Stock

Treasury stock consists of shares that were issued and subsequently reacquired by the issuing corporation, held in the company's treasury.

Bonds Payable

Bonds Payable are long-term liabilities representing the amount borrowed by an entity that must be repaid to bondholders, typically with interest, by a certain date.

Fair Value Adjustment

A financial reporting process that adjusts assets or liabilities to their current market value, rather than historical cost.

Valuation Account

A type of accounting balance that is used to adjust the value of a related account, often serving to decrease the value of the primary account.