According to GASB, Which of the Following Statements Is Not

question 23

Multiple Choice

According to GASB, which of the following statements is not true regarding restricted fund balances?

• A) Restricted funds are those that are subject to constraints imposed by external parties or by law.
• B) Restricted fund balance can result from legally enforceable requirements that resources be used only for specific purpose.
• C) Restricted funds are the result of a self-imposed constraint by a government upon itself.
• D) All of the above are correct

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Definitions:

Marital Obligation

The duties and responsibilities that are legally binding between married partners, including fidelity, support, and respect.

Enforceable Contract

A legally binding agreement where all parties have agreed to the terms, allowing for legal remedies in the event of non-compliance.

Criminal Prosecution

The process by which a person is charged, tried, and potentially convicted by the state for committing a criminal offense.

Duress

A condition where a person performs an act as a result of violence, threat, or other pressures against the person.