The Following Are Fund Balance Classifications Described in Chapter 2

question 22

Short Answer

The following are fund balance classifications described in Chapter 2:
A.Nonspendable
B.Spendable-Restricted
C.Spendable-Committed
D.Spendable-Assigned
E.Spendable-Unassigned
For each of the following scenarios,indicate how they would be classified for fund balance reporting purposes using the classification list above.Place the appropriate letter in the blank space next to each scenario.
_____ 1.Bond proceeds of $15,000,000 that must be used for construction of a fire substation remain unspent at the end of the fiscal year.
_____ 2.Prepaid rent of $6,000 remains at the end of the fiscal year.
_____ 3.The city council adopted a plan to set aside 2% of revenues over the next three years to help build cash reserves. At the end of the fiscal year 2% of the revenues were set aside.
_____ 4.The state transportation department provided $1,000,000 in state funds to be used for street widening. At the end of the fiscal year $750,000 remained unspent.
_____ 5.The county received a $3,000,000 endowment during the year.

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Definitions:

Systems Approach

A way of analysis that studies the entity as an integrated and interacting system of components or variables to address complexities.

Validate the Real Story

The act of verifying or confirming that a narrative or account of events is accurate and truthful.

Factual Errors

Mistakes in the representation of facts, often due to incorrect data, misunderstanding, or misinterpretation of information.

Steve Wozniak

Co-founder of Apple Inc., known for his key role in the development of the personal computer in the late 1970s and early 1980s.