An Example of an Expenditure Classification by Function for a Governmental

question 45

Multiple Choice

An example of an expenditure classification by function for a governmental fund would be:

• A) Public safety.
• B) Capital outlay.
• C) Salaries.
• D) Debt service.

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Definitions:

Equity Multiplier

A financial ratio that measures a company's total assets financed by its shareholders' equity, indicating leverage level.

Return On Equity

A measure of a corporation's profitability, indicating how much profit a company generates with the money shareholders have invested.

Debt-Equity Ratio

A measure that indicates the balance between equity contributed by shareholders and debt employed to finance company assets.

Return On Equity

A gauge of corporate profitability that indicates the profit made from the investments of its shareholders.