Governmental-type funds label the excess of assets over liabilities on the balance sheet as:
A) Net Assets
B) Net Fund Balance and Liabilities
C) Fund Balance
D) Assets Net of Liabilities

Question

Quizplus · Accepted Answer

Governmental-type funds use the term "fund balance" to indicate the difference between assets and liabilities. This represents the amount of resources that remain after specific obligations and restrictions have been satisfied. Choice A, net assets, is used in proprietary funds, and Choice D, assets net of liabilities, is not a term commonly used in governmental-type accounting. Choice B, net fund balance and liabilities, is not a commonly used term either.

Governmental-Type Funds Label the Excess of Assets Over Liabilities on the Balance