The city of Valley Ridge has a special fund with a total fund balance at year-end of $180,000. State law requires that 80% of the balance be used for public works services. The other 20% of the funds were supplemented by the city and have no restrictions. How should the Fund Balance be reported

4

The Motor Fuel Tax Fund has no unused supplies or prepaid expenses, so there are no Nonspendable resources in this example. All of the resources in this fund are required by state law to be used for road repairs and maintenance under the public works department. This represents a restriction imposed by an outside entity, and the net resources are reported as Restricted Fund Balance. Had the Village supplemented the Motor Fuel Tax Fund with resources that were not restricted or committed, the residual balance would be reported as Assigned Fund Balance. Recall, only the General Fund may report a positive Unassigned Fund Balance.

Explanation:

answer; i believe that the correct answer is (d); the business benefits because owners can share responsibilities;

a ab