When closing out the General Fund and Special Revenue Funds of a state or local governmental unit,the balance of the operating statement accounts and the balances of the budgetary accounts are closed to:

Question

Quizplus · Accepted Answer

The balance of the operating statement accounts and the balances of the budgetary accounts are closed to the Fund Balance. This represents the residual equity interest in the entire government's net assets. The Fund Balance is a residual category that reports the difference between assets and liabilities in governmental funds.

When Closing Out the General Fund and Special Revenue Funds