Fund Balances and Components Thereof

Free CPA BAR (Business Analysis & Reporting) lesson in State and Local Governments. 18 min read, ~2,680 words.

Fund balance applies only to governmental funds (general, special revenue, capital projects, debt service, permanent); proprietary funds use net position and fiduciary funds report fiduciary net position. Five classifications in order of constraint: nonspendable, restricted, committed, assigned, unassigned. Nonspendable = resources not in spendable form (inventories, prepaids, long-term receivables) or...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• III.C2

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