The numerical difference between (1) current assets and deferred outflows and (2) current liabilities and deferred inflows recorded in governmental funds is denoted as net position.

Question

Quizplus · Accepted Answer

The numerical difference between (1) current assets and deferred outflows and (2) current liabilities and deferred inflows is denoted as fund balance in governmental funds, not net position. Net position is used in the context of government-wide financial statements, reflecting the difference between total assets plus deferred outflows of resources and total liabilities plus deferred inflows of resources.

The Numerical Difference Between (1) Current Assets and Deferred Outflows