A special revenue fund reports total assets of $400,000 and total liabilities of $375,000. It reports these fund balance categories: Nonspendable, $12,000, and restricted, $15,000. What other fund balance category is reported?

Question

Quizplus · Accepted Answer

The other fund balance category reported is Unassigned, $(2,000). This is calculated by subtracting total liabilities and the sum of Nonspendable and Restricted fund balances from total assets: $400,000 (total assets) - $375,000 (total liabilities) - $12,000 (Nonspendable) - $15,000 (Restricted) = $(2,000). This negative balance indicates an Unassigned fund balance deficit.

A Special Revenue Fund Reports Total Assets of $400,000 and Total