Question

GASB standards state that rainy day funds may only be classified as ______ if they are created by a resolution or ordinance that identifies the specific circumstances under which the resources may be expended.

(A) restricted
(B) unrestricted
(C) committed
(D) assigned

Answer 1

Rainy day funds may only be classified as restricted if specific circumstances for expenditure are identified.

Step-by-step explanation:

GASB standards state that rainy day funds may only be classified as restricted if they are created by a resolution or ordinance that identifies the specific circumstances under which the resources may be expended.