Which of the following statements is true about Fund Balance classifications for the governmental funds?
A) A restricted fund balance is for monies the governing board has appropriated.
B) An assigned fund balance has been designated for a specific purpose and is restricted to use for only that purpose.
C) An unassigned fund balance has no restriction for use of the money and is normally applicable to the general fund.
D) A committed fund balance has been designated by an outside party for a particular use.
E) A nonspendable fund balance is designated only for the balance of permanent funds.

Question

Quizplus · Accepted Answer

An unassigned fund balance is the residual classification for the general fund and includes amounts that are not restricted, committed, or assigned to specific purposes.

Which of the Following Statements Is True About Fund Balance