The Following Description Provides the Best Definition for Which Fund

question 34

Multiple Choice

The following description provides the best definition for which fund: Accounts for resources that are legally restricted and both earnings and principal may be used to support government programs.

• A) Capital projects.
• B) Special Revenue.
• C) General Fund.
• D) Permanent.

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Definitions:

Prepaid Expenses

Costs paid in advance for goods or services, which are recorded as assets to be used or recognized as expense over time.

Direct Method

A cash flow statement presentation method that lists the major categories of gross cash receipts and payments.

Accrued Expenses

Expenses that have been incurred but not yet paid, typically recorded at the end of an accounting period.

Prepaid Expenses

Costs paid in advance for goods or services, which are accounted for as assets until the benefits are realized.