September is a “blackout month” when the CPA Exam is not offered. Use this time wisely by gaining better insight into a common FAR topic: Net Position & Fund Balance.
Net Position & Fund Balance
In this succinct Deep Dive lecture, Professor Donald Deis of the Texas A&M University-Corpus Christi breaks down the equity section of each fund type as well as explains when each category of fund balance should be used.
OK, now’s your chance to test your knowledge with a few proficiency questions that accompany this lecture in the Wiley CPAexcel CPA Review Course . Scroll down to the bottom of this blog post to check your answers.
1) A positive unassigned fund balance can appear only in the General Fund.
2) A municipality receives a federal grant that must be spent on a bridge renovation. The proper fund balance classification for these resources is committed fund balance.
3) The sum of restricted fund balance for all governmental funds must always equal the amount of restricted net position for governmental activities on the Statement of Net Position.