Unreserved fund balance


What is the effect on the General Funds' unreserved fund balance when capital assets are purchased during a year from General Fund revenues?

A. None of the above, capital assets must be purchased through a capital projects fund

B. Unreserved fund balance is increased

C. Unreserved fund balance is decreased

D. There is no effect, since one asset (cash) is replaced by another (capital asset)

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Accounting Basics: Unreserved fund balance
Reference No:- TGS065539

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