The city council appropriates a portion of the government's current year-end fund balance to eliminate an anticipated budget deficit in next year's budget.Projected expenditures are anticipated to be greater than expected revenues next year.The appropriated portion of the current year's fund balance should be reported as:

Question

Quizplus · Accepted Answer

The city council has specifically designated the portion of the current year's fund balance to eliminate the projected budget deficit for next year, hence it should be classified as an assigned fund balance.

The City Council Appropriates a Portion of the Government's Current