Which of the Following Results in a Decrease in Fund

question 76

Multiple Choice

Which of the following results in a decrease in fund balance on a governmental fund's Balance Sheet?

• A) Expenditures
• B) Transfers Received
• C) Encumbrance
• D) Both A and B

---

Definitions:

Bonds Payable

Long-term liabilities represented by bonds that a company has issued, which it is obligated to pay back at a future date along with interest payments.

Financing Activities

Transactions related to a company's raising and repaying of funds, including issuing debt, obtaining loans, and returning capital to shareholders.

Cash Dividend

A portion of a company's earnings that is paid to shareholders, typically in cash, as a return on their investment.

Operating Activities

Transactions related to the primary operations of a business, such as sales, purchases, and payroll, used in cash flow analysis.