Question

Which of the following sets of accounts are most likely to appear in the General Fund balance sheet?

a. Accrued salaries and other payables, Due to other funds, and Deferred inflows of resources—unavailable property taxes
b. Cash, Property taxes receivable, and Capital assets
c. Cash, Allowance for uncollectible taxes, and Compensated absences payable due in more than one year
d. Vouchers payable, Long-term bonds payable, and Unassigned fund balance

Answer 1

The correct answer is option a. The accounts likely to appear in the General Fund balance sheet are those representing current liabilities and resources, specifically option a. Assets on a bank's balance sheet represent financial instruments and obligations, not just physical cash in the bank.

Step-by-step explanation:

The accounts most likely to appear in the General Fund balance sheet reflect the current financial activities and resources available for government operations. Therefore, the correct option is a. Accrued salaries and other payables, Due to other funds, and Deferred inflows of resources—unavailable property taxes. These accounts represent typical short-term liabilities and deferred inflows of resources that a government would report in the General Fund.

Assets on a bank's balance sheet, such as loans and securities, may not actually be physical money in the bank because they are financial instruments indicating money owed to the bank by various entities or invested in bonds. When buying loans in the secondary market, an investor may pay more or less based on the creditworthiness of the borrower and current interest rates. If interest rates have risen, current loans with lower interest may be less attractive, whereas if rates have fallen, older loans with higher rates become more valuable.