Multiple Choice Questions
1. The fund balance category that must be zero if unassigned fund balance of the same fund is a deficit is
a. Assigned fund balance.
b. Committed fund balance.
c. Nonspendable fund balance.
d. All of the above must be zero if unassigned fund balance is negative.

2. Enabling legislation requiring that resources be expended only for a specific purpose result in which category of fund balance being present?
a. Assigned fund balance
b. Committed fund balance
c. Nonspendable fund balance
d. Restricted fund balance

3. Actions of the finance director may result in which category of fund balance being reported?
a. Assigned fund balance
b. Committed fund balance
c. Nonspendable fund balance
d. Restricted fund balance

4. If a government adopts a policy stating that it spends restricted resources before unrestricted resources but does not have a spend-down policy to indicate the category of fund balance reduced first by expenditures for which resources reflected in various fund balance categories are available, the presumed spend-down order is
a. Restricted, Assigned, Committed, Unassigned.
b. Restricted, Committed, Assigned, Unassigned.
c. Committed, Restricted, Assigned, Unassigned.
d. Restricted, Committed, Unassigned, Assigned.

5. Which of the following is not reflected as an assignment of fund balance?
a. Encumbrance of otherwise unassigned fund balance.
b. The budgeted use of a portion of unassigned fund balance to cover a budgeted excess of expenditures over revenues in the next fiscal year.
c. Intent of the government to use a portion of unrestricted, uncommitted fund balance for expenditure for a specific program or project as indicated by the properly authorized official or committee.
d. To indicate that a certain amount of resources will be held indefinitely to provide a safeguard against possible future revenue shortfalls or significant, unanticipated future expenditures.