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

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The balances of the operating statement accounts and the balances of the budgetary accounts are closed to Fund Balance - Unreserved, which represents the residual equity in the fund and is available for any legal purpose. Fund Balance - Reserved for Encumbrances is used to record outstanding encumbrances, while Other Financing Sources - Transfer Out is used to record transfers to other funds or entities. Appropriations Control is used to track the budgeted amounts for appropriations.

When Closing Out the General Fund and Special Revenue Funds