Graded HW #7:

Select from the option list provided the item that best indicates the correct classification of fund balance described by each situation. Each choice may be used once, more than once, or not at all.

N (Nonspendable)

R (Restricted)

C (Committed)

A (Assigned)

U (Unassigned)

Description		Answer
1. The debt service fund ended the year with fund balance of $75,000.
2. The State Comptroller indicated that the State would set aside $500,000 to cover post-employment benefits for police officers.
3. Inventory in the general fund totaled $25,000 at year-end.
4. The City of Olean received a grant from NYS earmarked for revitalization of the downtown area.
5. The Village Council passed a law stating that a certain percentage of property taxes would be used for economic development projects.
6. General fund revenues exceed expenditures by $60,000.
7. A local town received $500,000 from a long-time resident. The $500,000 can never be spent, but the proceeds can be used to benefit the general public.
8. A local town received $500,000 from a long-time resident. The $500,000 must be spent on local parks and recreation activities for kids.
9. The special revenue fund had liabilities exceeding assets of $20,000.
10. The town has a $250,000 reserve fund it set aside; the amounts from this fund can only be used with approval from a majority of the towns board of commissioners.