Fund Balances and Components Thereof
Free CPA BAR (Business Analysis & Reporting) lesson in State and Local Governments. 18 min read, ~2,639 words.
Fund balance applies only to governmental funds (general, special revenue, capital projects, debt service, permanent funds), not proprietary or fiduciary funds. Five classifications in order of constraint: nonspendable → restricted → committed → assigned → unassigned. Nonspendable = resources in non-liquid form (inventories, prepaids, long-term receivables) or legally/contractually required to...
Read the full lesson, free →
Worked examples, audio narration, and practice. No signup to read.
What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- III.C2
Browse all free CPA BAR lessons or jump into free CPA BAR practice questions.