Expenditures Are Generally Recorded and Fund Liabilities Are Recognized

question 69

Multiple Choice

Expenditures are generally recorded and fund liabilities are recognized

• A) When goods and services are received, but only if resources are available in the fund.
• B) When invoices are paid.
• C) When purchase orders are issued, regardless of whether or not resources are available in the fund.
• D) When goods and services are received, regardless of whether or not resources are available in the fund.

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Definitions:

Holding-period Return

The cumulative return gained from owning an asset or collection of assets over a specific timeframe, usually represented as a percentage.

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Complete Portfolio

An investment strategy that includes a diverse mix of assets to optimize risk and return.

Capital Allocation Line

A line in investment graph that shows the risk-reward profiles of various portfolios, combining a risk-free asset with a risky portfolio to maximize returns.