5) A general fund uses the consumption method to record inventories. Beginning inventories are $10,000, purchases are $600,000, and ending inventories are $12,000.

The general fund records an end-of-year adjusting entry that:

A. Debits nonspendable fund balance by $2,000

B. Debits nonspendable fund balance by $12,000

C. Credits nonspendable fund balance by $12,000

D. Debits unassigned fund balance by $2,000

6) A general fund's budgeted expenditures for the year are called:

A. Appropriations

B. Estimated expenditures

C. Encumbrances

D. Fund balance deficits

7) A government always has only one

A. Capital projects fund.

B. General fund.

C. Enterprise fund.

D. Special revenue fund.