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) Spendable-Designated Fund Balance.
B) Spendable-Committed Fund Balance.
C) Spendable-Restricted Fund Balance.
D) Spendable-Assigned Fund Balance.

Question

Quizplus · Accepted Answer

The resources received by the city can only be used for public works projects, which is a restricted purpose. Therefore, the resources would be classified as Spendable-Restricted Fund Balance.

A City Received Resources That the State Indicates Can Only