Which of the following would be reported as a nonspendable fund balance?
A) Inventory.
B) Restricted assets.
C) Assets whose use is limited.
D) Capital assets.

Question

Quizplus · Accepted Answer

A nonspendable fund balance refers to resources that cannot be spent or consumed because they are either not in a spendable form or are legally or contractually required to be maintained intact. Inventory falls under this category, as it is not a spendable resource until it is sold or consumed. The other options listed are either restricted or limited in terms of their use, but they are still considered spendable resources.

Which of the Following Would Be Reported as a Nonspendable