According to GASB, Which of the Following Statements Is Correct

question 108

Multiple Choice

According to GASB, which of the following statements is correct regarding committed funds?

• A) Committed funds are those that are designated as committed through ordinance or resolution by the government's highest level of authority.
• B) These constraints are easily changed by administrators.
• C) This is constraint is imposed by law and may not be changed without amendment of the law.
• D) Committed funds may be redesignated to uncommitted in the event of a budget shortfall.

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Definitions:

Financial Decisions

Decisions made by individuals or organizations related to the allocation of resources, investment, budgeting, and managing finances.

Operating Policy

A set of guidelines or principles that dictate the operational decisions and day-to-day functioning of an organization.

Directors

Individuals elected by shareholders to oversee the management of a company, making strategic and operational decisions to ensure the company's success.

Related Party Transaction

A deal or arrangement between two parties who are joined by a special relationship prior to the deal.