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A Governmental Fund Has Total Liabilities in Excess of Its

Question 53

Multiple Choice

A governmental fund has total liabilities in excess of its total assets at the end of the fiscal year.It has no deferred resource inflows or outflows.Which of the following statements is always true?


A) fund balance is negative
B) cash is less than short-term receivables
C) payables exceed receivables
D) payables exceed cash

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