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What is the budget fund balance?

With budget balances and fund balances, there are two key differences. The first is that a fund balance is the life-to-date net worth of a fund, measured by total assets minus total liabilities. A budget balance, on the other hand, is the amount that remains of the budget that was set for a specific time period.

What is the difference between governmental funds and proprietary funds?

There are 3 categories of funds with 11 fund types. Governmental funds used to account for governmental activities. Proprietary funds used to account for the business type activities of a government. Fiduciary funds used to account for cash or other resources held by a government acting as a trustee or agent.

How is fund balance calculated?

Fund balance and net assets are the difference between fund assets and liabilities reflected on the balance sheet or statement of net assets.

What is the fund balance of a local government?

What is Fund Balance? Fund balance is an accounting term to describe the difference between a funds assets and liabilities. For cash basis entities (the majority of local governments in Washington), fund balance represents the net cash after all revenues have been deposited and all expenses have been paid.

What does fund balance mean?

Fund balance (Equity) is essentially the difference between assets and liabilities. In general, it is the balance remaining after the assets have been used to satisfy the outstanding liabilities.

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How do you find the fund balance?

Fund balance (Equity) is essentially the difference between assets and liabilities.

What is fund balance in governmental accounting?

Fund balance is an accumulation of revenues minus expenditures. Each fund maintained by the city has a fund balance. Fund balance can be used in future years for purposes determined by City Council. To understand fund balance, it is important to understand fund accounting.

What is the appropriated fund balance?

Appropriated Fund Balance The amount of fund balance (assigned, restricted or unassigned) that management desires to legally authorize as a financing source to help fund specific expenditures. Requires legal action by the Board, to authorize the use of fund balance for a specific purpose.

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