Which of the following will require a debit to Fund Balance--Unassigned of a governmental fund when operating statement accounts are closed at the end of the year,assuming there are no other financing sources or uses?
A) Revenues are less than expenditures.
B) Revenues are more than expenditures.
C) Revenues are more than expenditures and encumbrances.
D) Revenues are less than expenditures and encumbrances.

Question

Quizplus · Accepted Answer

If revenues are less than expenditures, it means the governmental fund has incurred a deficit during the year, and the Fund Balance-Unassigned account needs to be debited to reflect the decrease in available financial resources.

Which of the Following Will Require a Debit to Fund