Hannah County has a total fund balance in the General Fund as of the end of the year of 1,565,000 .
Assume the following:
The budget officer has indicated there is 405,000 available for appropriation that has not been restricted or designated.
Unspent drug enforcement grant proceeds remained of 75,000
Outstanding purchase orders totaled 41,000
The county's governing board has earmarked 500,000 for anticipated increases in liability insurance premiums.
In the year-end financial statements, Hannah County would report reserved fund balance and unreserved fund balance, respectively, in the General Fund as 75,000 reserved fund balance; 405,000 unreserved fund balance
a. 575,000 reserved fund balance; 405,000 unreserved fund balance
b. 116,000 reserved fund balance; 905,000 unreserved fund balance
c. 116,000 reserved fund balance; 405,000 unreserved fund balance
d. 616,000 reserved fund balance; 405,000 unreserved fund balance
Question 2
Goods purchased on account for future use in the business, such as supplies, are called
a. prepaid liabilities
b. revenues
c. prepaid expenses
d. liabilities
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