Which of the Following Statements Is false

question 114

Multiple Choice

Which of the following statements is false?

• A) Unexpended intergovernmental grants and taxes dedicated to capital improvements in a capital projects fund are likely to be classified as Assigned Fund Balance
• B) The residual classification for funds other than the General Fund is Assigned.
• C) If a bond sinking fund is required by creditors or law, the unexpended resources would be classified as Restricted.
• D) The corpus principal) from a permanent fund should be classified as Nonspendable.

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Definitions:

Lockbox System

A system used by companies to expedite the collection of check payments by having them processed through a bank's PO Box.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at their face value to create a return to the investors.

Collection Time

The average period it takes for a business to receive payments owed by its customers after a sale has been made.

Lockbox System

A service provided by banks to companies for receiving payments from customers; payments are sent to a post office box and then quickly processed by the bank.