Expenditures of a city or county's governmental funds include
A)cash disbursements made to settle short-term liabilities
B)depreciation of general fixed assets
C)decreases in fund balance for operating purposes but not for capital asset acquisitions
D)decreases in fund balance for operating purposes,repayment of debt principal and interest,and capital asset acquisitions

Question

Quizplus · Accepted Answer

Expenditures of a city or county's governmental funds include decreases in fund balance for operating purposes, repayment of debt principal and interest, and capital asset acquisitions. Option A is incorrect, as cash disbursements made to settle short-term liabilities represent only a part of the total expenditures made by a governmental fund. Option B is incorrect because depreciation of general fixed assets represents a non-cash expense and not a cash expenditure. Option C is also incorrect since capital asset acquisitions would lead to a decrease in fund balance, in addition to operating costs.

Expenditures of a City or County's Governmental Funds Include