A City Has a Special Revenue Fund That Reports Cash

Multiple Choice

A city has a special revenue fund that reports cash of $100,000, inventories of $25,000, and accounts payable of $60,000. The resources for the fund are provided by a county grant. How is fund balance reported for the special revenue fund?

A) Committed, $65,000
B) Nonspendable, $25,000; committed $40,000
C) Nonspendable, $25,000; restricted, $40,000
D) Restricted, $65,000