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Net position and fund balances

BAR Chapter 24 · Area III · Blueprint III.C.1–2

Net position tells readers how much of the government's equity is tied up in capital assets, how much is held back by outside restrictions, and how much is truly free. Fund balance tells them how much a fund can spend and who decides how. The Blueprint asks you to calculate both sets of components and prepare the journal entries. Leo splits Riverton's year 2 net position and fund balances, line by line.

In this chapter

1. Net investment in capital assets
2. Restricted and unrestricted net position
3. The five fund balance categories
4. Calculating fund balances
5. Journal entries for fund balance and net position

This chapter has 5 lessons, 50 practice MCQs with explanations and 13 simulations, plus flashcards and a recall sheet.

What this chapter covers

• Net investment in capital assets, restricted and unrestricted
• nonspendable, restricted, committed, assigned and unassigned

Chapter 23: Deriving the government-wide statements · Chapter 25: Capital assets and long-term liabilities