GOV-Fund Balance Flashcards
What are non spendable fund balances?
portion of fund balance that reflects equity for amounts that cannot be spent because they are not in spendable form would be termed “nonspendable.” Both supplies inventory and prepaid expenses are not spendable.
What is committed fund balance
Committed fund balance would result from an action of the highest level of the government and .
What is restricted fund balance?
Restrictions of fund balance would reflect specific purposes externally imposed by creditors, grantors, or enabling legislation.
What is assigned fund balance?
assigned fund balance would reflect action by a government designee-other than general fund
Note:
Only the general fund can have an unassigned fund balance
The following information pertains to Park Township’s general fund at December 31, 20X1:
Total assets, including $200,000 of cash $1,000,000
Total liabilities 600,000
Reserved for encumbrances 100,000
Appropriations do not lapse at year-end and there are no existing restrictions, commitments, assignments, or nonspendable categories of fund balance. At December 31, 20X1, what amount should Park report as unassigned fund balance in its general fund balance sheet?
The question states that Park Township’s total fund equity equal to its assets of $1,000,000 less its liabilities of $600,000, or $400,000, has not previously been allocated. This $400,000 of fund equity should be displayed as assigned or committed for $100,000, leaving an unassigned amount of $300,000.
