Which of the Following Is True with Respect to Rainy

question 71

Multiple Choice

Which of the following is true with respect to rainy day funds?

• A) Rainy day funds are classified as committed if they are created by a resolution or ordinance that identifies the specific circumstances under which the resources may be expended.
• B) If rainy day funds are available "in emergencies" or periods of "revenue shortfalls" they are classified as committed.
• C) Both A and B.
• D) Neither A nor B.

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Definitions:

Property Tax

Taxes levied by local governments based on the assessed value of real estate property owned.

Accounts Receivable

An asset, which is a claim against the customer created by selling merchandise or services on credit.

Credit Sales

Sales made on credit, where the payment from the customer is received at a later date.

Accounts Receivable

Money owed to a business by its clients for goods or services delivered but not yet paid for.