Purchase Solution

Commited fund balance and restricted fund balance discussion

Not what you're looking for?

Ask Custom Question

What is a committed fund balance in a governmental funds balance sheet? How does it differ from a restricted fund balance?

Purchase this Solution

Solution Summary

The solution explains what a committed fund balance is in a governmental funds balance sheet and explains how it differs from a restricted fund balance.

Solution Preview

Here is my response to get you started:

A committed fund balance in a governmental funds balance sheet is a special type of fund. All monies that are in the committed fund can only be used for a specific purpose as determined "by a formal action of the government's highest level of decision-making authority" (GASB, 2009). In order for the allocations in the fund to be used for any other purpose outside of the formal action that was directed by the highest level of decision-making authority, the authority must revoke the directive and modify it in writing as necessary to reflect the permitted use of the committed fund allocations. The committed fund balance reflects the current amount in the committed fund as of the date on the governmental entity's balance sheet presentation.
Committed fund balances are not subject to legal intervention for any means, including covering budget ...

Purchase this Solution


Free BrainMass Quizzes
Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.