Which of the following is not an appropriate use of a fund balance reserve? a. T
ID: 2438446 • Letter: W
Question
Which of the following is not an appropriate use of a fund balance reserve?
a. To report amounts loaned to another fund for more than one year.
a. To indicate that the finance director is setting aside a substantial amount of resources for a special project.
a. To report the expected costs of orders outstanding at year-end that are to be filled in the next fiscal year.
a. To indicate that a portion of fund net assets is not available to be used to finance next year's expenditures.
a.a. To report amounts loaned to another fund for more than one year.
b.a. To indicate that the finance director is setting aside a substantial amount of resources for a special project.
c.a. To report the expected costs of orders outstanding at year-end that are to be filled in the next fiscal year.
d.a. To indicate that a portion of fund net assets is not available to be used to finance next year's expenditures.
Explanation / Answer
Answer is option A
To report amounts loaned to another fund for more than one year.
Reporting of amounts loaned to another fund for more than one year is not an appropriate use of a fund balance reserve.
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