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The Purpose of a Governmental Entity's General Fund's Fund Balance

Question 27

Multiple Choice

The purpose of a governmental entity's general fund's Fund Balance Reserved for Inventory of Supplies ledger account is to:


A) Earmark resources for replacement of supplies
B) Provide for outstanding purchase orders for supplies
C) Prevent improper appropriation of the fund balance to finance a deficit budget
D) Accomplish none of the above

Correct Answer:

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