What is the reporting requirement for the fund balance section of the governmental funds balance sheet?
A)governmental fund balances should be reported in a single amount
B)governmental fund balances should be segregated in three components: invested in capital assets,net of related debt;restricted;and unrestricted
C)governmental fund balances should be segregated between reserved and unreserved amounts
D)governmental fund balances should be segregated in five components: nonspendable,restricted,committed,assigned and unassigned

Question

Quizplus · Accepted Answer

According to GASB guidance, the fund balance section of the governmental funds balance sheet should be segregated into five components: non-spendable, restricted, committed, assigned, and unassigned. Non-spendable fund balances are amounts that cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact. Restricted fund balances are amounts that can only be used for specific purposes as set by external parties, constitutional provisions, or enabling legislation. Committed fund balances are amounts that can only be used for specific purposes as determined by a formal government action such as a resolution, ordinance, or budgetary document. Assigned fund balances are amounts that are intended to be used for specific purposes but are neither restricted nor committed. Unassigned fund balances are amounts that are available for any lawful purpose.

What Is the Reporting Requirement for the Fund Balance Section