A county's special revenue fund reports total fund balances of $2,000,000 from resources restricted for fire protection services in unincorporated areas. The resources come from state grants and from allocations of general property taxes. The fund's assets consist of cash, receivables, prepaid expenses and inventories. The fund balance is most likely divided into which categories?

Question

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The fund balance is divided into nonspendable (for inventories and prepaid expenses), restricted (resources specifically for fire protection services), and potentially committed (if any formal actions have been taken to allocate funds for specific purposes within the constraints of the restriction).

A County's Special Revenue Fund Reports Total Fund Balances of $2,000,000