Arbitrage is:
A. a means of settling payroll disputes between professional athletes and their respective teams.
B. the difference between the amount of interest paid on long-term debt and the amount of interest received when investing the proceeds of that long-term debt.
C. the amount of tax plus interest paid by governments on the total of the excess of revenues and other financing sources over expenditures and other financing uses in the governmental funds and operating income in the proprietary funds.
D. a payment in lieu of tax from the federal government to a local government for some services provided to the federal government by the local government.
Question 2
In the chart of accounts, each account number has two digits. The first digit indicates the major account group towhich the account belongs. Which of the following correctly identifies the major account groups typicallyrepresente d by the numbers 1 through 5?
a. 1Assets, 2Liabilities, 3Owner's Equity, 4Expenses, 5Revenues
b. 1Assets, 2Liabilities, 3Owner's Equity, 4Revenues, 5Expenses
c. 1Assets, 2Owner's Equity, 3Revenues, 4Expenses, 5Drawing
d. 1Owner's Equity, 2Drawing, 3Revenues, 4Expenses
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