What types of expenditures are classified under governmental fund expenditures?

The classification of expenditures under governmental fund expenditures includes Debt Service, Capital Outlay, and Current expenditures, making the first choice the correct answer.

Debt Service expenditures pertain to the payment of interest and principal on borrowed funds, often made to finance government activities. These expenditures are essential for maintaining the government's creditworthiness and funding public services.

Capital Outlay refers to expenditures for acquiring, improving, or maintaining fixed assets like land, buildings, and equipment beneficial for long-term use in government operations. These expenditures contribute to the enhancement of infrastructure and public services over time.

Current expenditures are expenses for day-to-day operations, including salaries, supplies, and services necessary for the ongoing functioning of government entities. Such expenses are crucial for maintaining the routine operations of governmental programs and services.

The other choices might include elements that are not fully aligned with the standard classifications of governmental fund expenditures, such as transfers or types of expenditures not typically categorized as governmental funds. Understanding these categories helps ensure effective budgeting and financial reporting in government entities.