The Township of Thomasville’s General Fund has the following net resources at ye

Question

The Township of Thomasville’s General Fund has the following net resources at year end:
$77,000 of prepaid insurance
$375,000 rainy day fund approved by the township governing board with specific conditions for its use
$2,500 of supplies inventory
$61,000 state grant for snow removal
$150,000 contractual obligations for the purchase of equipment
$200,000 to be used to fund government operations in the future
Outstanding encumbrance of $80,000 for the purchase of furniture & fixtures (assume no contractual obligation)

62. What would be the total Committed fund balance?

A) $375,000
B) $290,000
C) $525,000
D) $455,000

Please show how you got the answer. thank you.

Explanation / Answer

Ans 5: $ 525000

Solution:

Total Committed fund balance= Rainy day fund approved by the township+ contractual obligations for the purchase of equipment

                                                 = $ 375000+ 150000 = $ 525000

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