FUND BALANCE Definition

Bookmark and Share

FUND BALANCE is when liabilities are subtracted from assets, there is a fund balance. A positive fund balance means there are more assets than liabilities; a negative fund balance means just the opposite. Fund balance can be complicated by the fact that part of the fund balance is reserved and part unreserved. The difference between reserved and unreserved is that the unreserved can potentially be authorized for future expenditures while the reserved cannot. Additionally, the fund balance is a residual and not necessarily a cash amount.

Learn new Accounting Terms

STRATIFY is to arrange a population or a sample in distinct layers. Stratified sampling is used in auditing to select a greater percentage of accounts with high balances than of accounts with low balances.

REGRESSIVE TAX is a tax system to where the more income that is realized the lower the tax rate becomes.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.