According to GASB Statement No

question 109

Multiple Choice

According to GASB Statement No.54 which of the following statements is not true regarding assigned funds?

• A) Assigned fund balances represent governmental resources that the government intends to use for a specific purpose such as a debt service fund.
• B) Constraints on assigned resources are more easily changed than committed funds.
• C) For governmental funds other than the General Fund, this is the category for all positive residual fund balances.
• D) This is the only fund balance that can be negative

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Definitions:

Obligee

The party in a contractual agreement who is owed a performance or payment by another party (the obligor).

Assignee

An individual or entity to whom rights or interests are transferred by another, known as the assignor.

Good Faith

Acting with honesty and sincerity without intention to defraud or seek an unfair advantage.

Delegation

The act of assigning responsibility or authority from one person to another, often seen in the context of tasks and duties.