Question

The city council of Lake Jefferson wants to establish a small botanical garden in the city park. The council decided to put aside funds in the amount of $22,000 to build and establish the botanical garden. At the end of the fiscal year, $3,000 of the funds had been spent. How should the remainder of the funds be reported?

Answer 1

Answer:

These are the options for the question:

A) Committed Fund Balance

B) Assigned Fund Balance

C) Restricted Fund Balance

D) Nonspendable Fund Balance

And the correct answer is:

B) Assigned Fund Balance

Explanation:

Assigned Fund Balance is the cateogry of the government fund that is intended to be used in something specific, as determined by the respective legislative or executive authority.

In this case, the city council has already assigned a total of $22,000 for the construction of the botanical garden, and after $3,000 have been spent, it needs to keep the remaining $19,000 in the Assigned Fund Balance category.