A city received resources that the state indicates can only be used for public works projects, such as road construction. Assuming the resources have not been expended by year end, how would the resources the city received be shown in the city's fund balances?
A) Designated Fund Balance.
B) Committed Fund Balance.
C) Restricted Fund Balance.
D) Assigned Fund Balance.

Question

Quizplus · Accepted Answer

The resources received by the city that can only be used for public works projects would be considered restricted funds since the state has placed restrictions on their use. The restricted fund balance would reflect the amount of resources received and not yet utilized by year end.

A City Received Resources That the State Indicates Can Only