The accounting equation for a governmental fund is
A)Assets = Liabilities + Equity.
B)Current assets + Noncurrent assets - Current liabilities - Noncurrent liabilities = Net position.
C)Current assets - Current liabilities = Fund Balance.
D)Assets = Liabilities + Fund Balance.

Question

Quizplus · Accepted Answer

The accounting equation for a governmental fund is Current assets - Current liabilities = Fund Balance, as governmental funds focus on short-term financial resources and liabilities.

The Accounting Equation for a Governmental Fund Is